You Want to Invest in a Project in Australia

question 71

Multiple Choice

You want to invest in a project in Australia. The project has an initial cost of A$2.3 million and is expected to produce cash inflows of A$950,000 a year for 3 years. The project will be worthless
After the first 3 years. The expected inflation rate in Australia is 5 percent while it is only 2 percent
In Canada. The applicable interest rate in Australia is 9 percent. The current spot rate is A$1 =
C$) 86. What is the net present value of this project in Australian dollars using the foreign currency
Approach?

• A) A$101,361
• B) A$104,730
• C) A$111,008
• D) A$122,222
• E) A$126,321

Recognize the various specializations within psychology and their unique perspectives on behavior and mental processes.

Identify the historical milestones and key figures in the development of psychology as a discipline.

Acknowledge the role of biological factors in psychology, as explained by biopsychologists or behavioral neuroscientists.

Comprehend the significance of cognitive processes and their impact on human behavior.

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Definitions:

Market Rate

The prevailing price or interest rate at which goods, services, or securities are traded in a free market.

Interest

The charge for borrowing money or the return on investment in savings accounts or bonds, typically expressed as a percentage.

Living Standard

The degree of prosperity, ease, physical items, and essential needs accessible to an individual, community, or social group.

Per Capita

A statistical measure that divides a total figure by the population number, providing an average per person.