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The Current Indirect Exchange Rate Is 1

Question 102

Multiple Choice

The current indirect exchange rate is 1.43 NZD per USD.The anticipated annual inflation rate is 1% in the United States and 3% in New Zealand.If the cash inflow in NZD is 150,000 in one year and the discount rate is 7%,what is the present value of the 150,000 NZD in U.S.dollars after conversion from NZD to dollars using the forward exchange rate? Round your answer to the nearest whole dollar.


A) $103,413
B) $99,974
C) $96,129
D) $92,357

Correct Answer:

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