Question
A manager is earning $150,000 in the US and is negotiating a job offer in UK. The current nominal exchange rate is $1.30 per pound
A manager is earning $150,000 in the US and is negotiating a job offer in UK. The current nominal exchange rate is $1.30 per pound and PPP based exchange rate is $1.20 per pound. What is the salary in UK that will provide the same purchasing power as her current salary in the US? Assume the income in entirely spent in the country where it is earned.
| $120,000 | ||
| $122,500 | ||
| $125,000 |
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Connect Online Access For Foundations Of Financial Management
Authors: BLOCK
18th Edition
1266037829
