A firm is expecting a payment of Can$150,000 four years from now. The risk-free rate of return is 3.9 percent in the United States and 4.6 percent in Canada. The inflation rate is 3 percent in the United States and 4.2 percent in Canada. Assume the current exchange rate is Can$1 = $.87. How much will the payment four years from now be worth in U.S. dollars?

Multiple Choice

$138,887

$126,909

$99,300

$166,184

$177,285