You Are Considering a Project in Poland Which Has an Initial

question 326

Multiple Choice

You are considering a project in Poland which has an initial cost of 325,000PLN. The project is expected to return a one-time payment of 515,000PLN four years from now. The risk-free rate of
Return is 4 percent in the U.S. and 3.5 percent in Poland. The inflation rate is 3 percent in the U.S.
And 2 percent in Poland. Currently, you can buy 291PLN for 100USD. How much will the payment
Four years from now be worth in U.S. dollars?

• A) $159,217
• B) $180,560
• C) $1,460,350
• D) $1,468,901
• E) $1,528,828

---

Definitions:

Justiciable Controversy

A dispute or case suitable for adjudication by a court, characterized by a real and substantial controversy that demands legal determination.

ADR

Alternative Dispute Resolution; methods outside the courtroom, such as mediation or arbitration, used to resolve disputes.

60 Percent

A fraction, represented as sixty out of one hundred, often used to signify a majority or a significant portion in various contexts.

75 Percent

A fraction or percentage representing three quarters of a whole or total.