Answer:
the present value of project cash flows is $138,888.89
Explanation:
The computation of the present value of project cash flows is shown below
Value of €100,000 in US $ in one year is
= €100,000 × $1.50
= $150,000
Now the Present value is
= Payment × (1 ÷ (1 + rate of interest)^number of years)
= $150,000 × (1 ÷ (1 + 8%)^1)
= $138,888.89
Hence, the present value of project cash flows is $138,888.89
