The current indirect exchange rate is 12 pesos per dollar.The anticipated annual inflation rate is 6% in the United States and 14% in Mexico.If the cash inflow in pesos is 50,000 in one year,what are the 50,000 pesos worth in U.S.dollars after conversion from pesos to dollars using the forward exchange rate?
A) $3,480.78
B) $3,874.27
C) $3,882.13
D) $3,983.78
Correct Answer:
Verified
Q82: Describe transaction,operating,and translation exposure.
Q84: Translation principles in many countries require the
Q85: If we were to select the appropriate
Q87: Assume you manage a firm that faces
Q89: Assume that you manage a firm that
Q89: Which of the statements below is FALSE?
A)Multinational
Q90: The current indirect exchange rate is 11
Q92: Transaction exposure deals with converting financial statements
Q93: Assume you manage a firm that faces
Q100: Multinational _ is a straightforward application of
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