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1. By using data from table, find the total opportunity cost of capital (Find proceeds of 90-day investment in a second currency: principal + interest
1. By using data from table, find the total opportunity cost of capital (Find proceeds of 90-day investment in a second currency: principal + interest income).
2. By using data from table, find the CIA profit (after accounting for opportunity cost of capital; do not round intermediate calculation: Round your final answer to the nearest US dollar)
Amount $3,000,000 7% US Interest rate Mexico interest rate 4% Spot Rate Ps 19.6512/$ 90-day Forward Rate Ps 19.2131/S Investment for 90 days Amount $3,000,000 7% US Interest rate Mexico interest rate 4% Spot Rate Ps 19.6512/$ 90-day Forward Rate Ps 19.2131/S Investment for 90 daysStep by Step Solution
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