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

question 137

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 percent in Canada and 4 percent in Poland. The inflation rate is 2 percent in Canada and
5 percent 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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Definitions:

Nature/nurture Debate

An ongoing discussion about the relative influence of genetic inheritance (nature) and environmental factors (nurture) on human development.

Dualism

The philosophical concept that reality or existence is divided into two distinct and opposite parts, such as mind and body.

Cognitive Psychology

A school of thought that studies how people think, learn, and remember.

Psychological Principles

Fundamental theories or laws that underpin the thoughts, feelings, and actions of individuals, guiding an understanding of psychological processes.