8-32. In a certain foreign country in 2009, the local currency (the Real) was pegged to the...
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8-32. In a certain foreign country in 2009, the local currency
(the ‘Real’) was pegged to the U.S. dollar at the rate of $1 U.S. = 1 Real. The Real was then devalued over the next five years so that $1 U.S. = 2 Real. A bank in the northeastern United States bought assets in this country valued at 100 million Real in 2009. Now that it is year 2014, what is the worth of this bank’s investment in U.S.
dollars? Should the bank sell out of its investment in this foreign country or should it buy more assets? (8.6)
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Related Book For 
Engineering Economy
ISBN: 9781292265001
17th Global Edition
Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling
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