The P & Gs foreign exchange department is interested in hiring you. The following information and a series of questions are presented for you to convince the company that hiring you will be definitely a positive NPV decision, i.e., the MNCs value will increase!!!

As of today, spot rate of Canadian dollar (C$) and pound sterling () are, respectively, $.70 and $1.596. Also, cross exchange rate is 1 = C$2.28.

In addition, one-year forward rates are C$ = $.71 and = $1.58004; one-year interest rates are in U.S. 8%, in England 9.09%, and in Canada 7%, respectively.

Forecast the annual percentage change using the international Fisher effect in value.