The Dollar Interest Rate Is 6 Percent, and the Swiss

question 45

Multiple Choice

The dollar interest rate is 6 percent, and the Swiss franc interest rate is 4 percent. If the required rate of return for a project in Switzerland is 15 percent, calculate the required rate of return in the United States for a similar project.

• A)17.2 percent
• B)12.8 percent
• C)15 percent
• D)8.5 percent

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Definitions:

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