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Answer A B and C Homework: M5: Chapter 31 Homework Save Score: 0 of 1 pt 1 of 9 (0 complete) HW Score: 0%, 0

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Answer A B and C

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Homework: M5: Chapter 31 Homework Save Score: 0 of 1 pt 1 of 9 (0 complete) HW Score: 0%, 0 of 9 pts P31-1 (similar to) Question Help You are a U.S. investor trying to calculate the present value of a E18 million cash inflow that will occur one year in the future. The spot exchange rate is S = $1.171 / 6, and the forward rate is F= $1.205 / E. You estimate that the appropriate dollar discount rate for this cash flow is 7% and the appropriate euro discount rate is 4%. a. What is the present value of the E18 million cash inflow computed by first disc en converting it into dollars? b. What is the present value of the (18 million cash inflow computed by first converting the cash flow into dollars and then discounting it? c. What can you co nationally integrated, based on your answers to (a) and (b)? a. What is the present value of the (18 million cash inflow computed by first discounting the euro and then converting it into dollars? The present value of the 618 million cash inflow is $ million. (Round to two decimal places.)

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