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:
Verified
Q97: One way to hedge the future conversion
Q98: Assume that you manage a firm that
Q99: The current indirect exchange rate is 18
Q100: Multinational _ is a straightforward application of
Q101: With the foreign currency approach,if we know
Q103: Financial managers are not well served if
Q104: To find the appropriate discount rate for
Q105: You are considering a project that will
Q106: You are CEO of Acme,Inc.located in the
Q107: Your author suggests that multinational capital budgeting
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents