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13) The current indirect exchange rate is 12 pesos per dollar. The cash inflow in pesos is 100,000 in two years and the discount rate

13) The current indirect exchange rate is 12 pesos per dollar. The cash inflow in pesos is 100,000 in two years and the discount rate is 10%. During this time, the anticipated annual inflation rate is 6% in the United States and 14% in Mexico. What is the present value of the 100,000 pesos in U.S. dollars after conversion from pesos to dollars if you are using current and forward exchange rates?

A) $5,924.46

B) $5,984.35

C) $5,954.36

D) $5,936.54

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