Fetco Co. (a U. S. firm) has a subsidiary in Germany that generates substantial earnings in euros each year. It will soon decide whether to divest the subsidiary. One week ago, a company offered to purchase the subsidiary from Fetco Co., and Fetco has not yet responded to this offer. If the long-term interest rate in the US seddenly declines and all other factors are unchanged, will the NPV of the divestiture be larger, smaller or same as last week?
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Fetco Co. (a U. S. firm) has a subsidiary in Germany that generates substantial earnings in euros ea...
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