A project in Qatar
requires an initial investment of 2 billion Qatari Riyal. The project is
expected to generate net cash flows 3 billion and 4 billion Qatari Riyal in the
two years of operation, respectively. The project has no salvage value. The
current value of the Qatari Riyal is 1,100 per Jordanian Dinars, and the value
of the Qatari Riyal is expected to be 1,200 Riyal per Jordanian Dinars after
two years. Further assume that the funds are blocked and that the Jordanian
company will only be able to remit them back to Jordan in two years. What is
the NPV of this project if the required rate of return is 11 percent?
O a.-2,647,139.91
b. 1,652,976.25
O C. -1,250,183.43
O d. 2,455,171.13
O e. None of the Above
