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A US Firm Invested $800,000 in a Project in India When

Question 38

Essay

A U.S. firm invested $800,000 in a project in India when the exchange rate was 43.8789
rupees per dollar. At the end of a year, the project produced a cash flow of 50 million
rupees, and the exchange rate was 40.5669 rupees per dollar. What was the rate of
return on the currency? What was the rate of return on the project? What was the total
rate of return earned by the U.S. firm?

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The rate of return on the currency was 4...

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