Use the Information for the Question(s)below

question 27

Multiple Choice

Use the information for the question(s) below.
You are a U.S.investor who is trying to calculate the present value of £5 million cash inflow that will occur one year in the future.The spot exchange rate is S = $1.8839/£ and the forward rate is F1 = $1.8862/£.The appropriate dollar discount rate for this cash flow is 5.32% and the appropriate £ discount rate is 5.24%.
-The present value of the £5 million cash inflow computed by first converting into dollars and then discounting is closest to:

• A)$8,950,495.
• B)$8,954,615.
• C)$8,943,695.
• D)$8,961,420.

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Definitions:

Work

An activity involving mental or physical effort done in order to achieve a purpose or result, often associated with a profession or occupation.

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describes being after the expected, regular, or usual time or the state of delayed timing.

Excuse Game

A behavioral pattern where individuals routinely justify their actions or decisions with excuses, often to avoid responsibility.

Making Excuses

The act of creating reasons or explanations to justify behavior, often to deflect blame or avoid taking responsibility.