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Mia Caruso Enterprises, a U.S. manufacturer of children's toys, has made a sale in India and is expecting a 400 million rupee cash inflow in
Mia Caruso Enterprises, a U.S. manufacturer of children's toys, has made a sale in India and is expecting a 400 million rupee cash inflow in one year. The currency of India is the rupee.) The current spot rate is S -$0.022 /rupee and the one-year forward rate is F1 $0.0210 rupee a. What is the present value of Mia Caruso's 400 million rupee inflow computed by first discounting the cash flow at the appropriate India rupee discount rate of 10% and then converting the result into dollars? b. What is the present value of the 400 million rupee cash inflow computed by first converting the cash flow into dollars and then discounting it at the appropriate dollar discount rate of 5%? c. What can you conclude about whether these markets are international integrated, based on your answers to (a) and (b)? a. What is the present value of Mia Carusos 400 million rupee inflow computed by first discounting the cash flow at the appropriate India rupee discount rate of 10% and then converting the result into dollars? The present value of Mia Caruso's 400 million rupee inflow is on. (Round to one decimal place. b. What is the present value of the 400 million rupee cash inflow computed by first converting the cash flow into dollars and then discounting it at the appropriate dollar discount rate of 5%? The present value of Mia Caruso's 400 million rupee inflow is on. (Round to one decimal place. c. What can you conclude about whether these markets are international integrated, based on your answers t (a) and (b)? (Select the best choice below)
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