Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
stranahan stranahan
wrote...
Go to Answer
Posts: 3324
Rep: 10 0
7 years ago
Say that the current indirect exchange rate is 12 pesos per dollar. The cash inflow in pesos is 100,000 in two years and the discount rate is 10%. During this time, the anticipated annual inflation rate is 6% in the United States and 14% in Mexico. What is the present value of the 100,000 pesos in U.S. dollars after conversion from pesos to dollars if you are using current and forward exchange rates?
A) $5,936.54
B) $5,954.36
C) $5,984.35
D) $5,924.46
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
Read 163 times
2 Replies
Replies
Answer verified by a subject expert
torchunicycletorchunicycle
wrote...
#1
Posts: 348
Rep: 54 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

stranahan Author
wrote...
#2
7 years ago
Thank you very much for this. It's really helpful.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1290 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 4430
  
 153
  
 180
Your Opinion
Do you believe in global warming?
Votes: 370
Previous poll results: Do you trust social media networks with protecting your privacy?