You Are Considering a Project in Poland, Which Has an Initial

question 243

Multiple Choice

You are considering a project in Poland, which has an initial cost of 250,000PLN. The project is expected to return a one-time payment of 400,000PLN 5 years from now. The risk-free rate of return is 3 % in Canada and 4 % in Poland. The inflation rate is 2 % in Canada and 5 % in Poland. Currently, you can buy 375PLN for $100. How much will the payment 5 years from now be worth in dollars?

• A) $101,490
• B) $142,060
• C) $1,462,350
• D) $1,489,025
• E) $1,576,515

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