Question
A company needs US$ 10,000,000 for one year to finance working capital. It has two options: Borrow US$ 10,000,000 in the USA at 6% per
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A company needs US$ 10,000,000 for one year to finance working capital. It has two options:
Borrow US$ 10,000,000 in the USA at 6% per annum or borrow in Europe: 9,259,259.26 (at current exchange rate of $1.08/) for 5% per annum.
At what ending exchange rate would the company be indifferent between borrowing US dollars and borrowing Euros.
A. $1.0800/
B. $1.1821/
C. $0.9172/
D. $1.0903/
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Bitcoin Technical Innovations From The Trenches
Authors: Sjors Provoost
1st Edition
9090360425, 978-9090360423
