Exchange Rate Quote Convert the following direct quote to a dollar indirect quote (round your answer to 4 decimal places):

1 Danish Krone = $.2205

A) 4.5351 Krone
B) 1.2205 Krone
C) .2205 Krone
D) .7795 Krone

23) Currency Exchange Compute the amount of foreign currency that can be purchased for $260,000 (round your answer to 2 decimal places):

1 Danish Krone = $.2055

A) 53,430 Krone
B) 12,652.07 Krone
C) 1,265,206.81 Krone
D) 260,000 Krone

24) Currency Exchange Compute the number of dollars that can be bought with 2.00 million of foreign currency units (round your answer to 2 decimal places):

$1 = 15,990 Vietnam Dong

A) $12,508
B) $3,198.00
C) $2.00
D) $125.08

25) Discount Rates A financial manager has determined that the appropriate discount rate for a foreign project is 17.25 percent. However, that discount rate applies in the United States using dollars. What discount rate should be used in the foreign country using the foreign currency? The inflation rate in the United States and in the foreign country is expected to be 9.5 percent and 11.5 percent, respectively.

A) 15.25%
B) 19.25%
C) 9.50%
D) 28.75%