Question
You are expecting a payment of 480,000PLN three years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent
You are expecting a payment of 480,000PLN three years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent in Poland. The inflation rate is 2.5percent in the U.S. and 3 percent in Poland. Currently, you can buy 277PLN for 100USD. How much will the payment three years from now be worth in U.S. dollars? A. $154,751 B. $168,189 C. $219,511 D. $1,317,269 E. $1,369,888
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
2nd Edition
0030315131, 978-0030315138
