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Suppose that 1 Swedish krona could be purchased in the foreign exchange market today for $ 0 . 3 . If the krona appreciated 4
Suppose that Swedish krona could be purchased in the foreign exchange market today for $ If the krona appreciated tomorrow against the dollar, how many kronas would a dollar buy tomorrow? Round your answer to two decimal places. bSuppose the exchange rate between the US dollar and the South African rand was rand $ and the exchange rate between the US dollar and the Israeli shekel was shekel $ What was the exchange rate between the South African rand and the Israeli shekel? Do not round intermediate calculations. Round your answer to two decimal places.
cInternational Machinery Company IMC is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a year project in the United States. The project's expected dollardenominated cash flows consist of an initial investment of $ and a cash inflow the following year of $ IMC estimates that its riskadjusted cost of capital is Currently, US dollar will buy Swedish kronas. In addition, year riskfree securities in the United States are yielding while similar securities in Sweden are yielding If the interest parity holds, what is the forward exchange rate of Swedish krona per US dollar? Do not round intermediate calculations. Round your answer to two decimal places..
If IMC undertakes the project, what is the net present value and rate of return of the project for IMC in home currency? Do not round intermediate calculations. Round your answers to two decimal places.
NPV:
Rate of return
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