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You are expecting a payment of NKr450,000 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 NKr450,000 three years from now The risk-free rate of return is 3 percent in the U.S. and 4 percent in Norway. The inflation rate is 2.5 percent in the U.S. and 3 percent in Norway. Currently, you can buy NKr5.94 for $1. How much will the payment three years from now be worth in U.S. dollars? $81,511 O $69,888 $73,530 $75,758 O $78,077
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