You Are Considering a Project in South Africa Which Has

question 49

Multiple Choice

You are considering a project in South Africa which has an initial cost of R385,000. The project is expected to return a one-time payment of R428,900 four years from now. The risk-free rate of return is 3.5 percent in the U.S. and 2.4 percent in South Africa. The inflation rate is 4 percent in the U.S. and 3 percent in South Africa. Currently, you can buy R10.48 for $1. How much will the payment of R428,900 be worth in U.S. dollars four years from now?

• A) $42,777
• B) $40,560
• C) $47,251
• D) $46,926
• E) $44,357

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Definitions:

NMR Spectrum

A representation of the nuclear magnetic resonance absorption by nuclei in a sample.

Isobutyl Acetate

An organic compound and ester formed from the reaction of isobutanol with acetic acid, commonly used as a solvent and in flavorings.

Splitting Patterns

Describes how the peaks in an NMR spectrum are divided into multiple sub-peaks due to interactions between non-equivalent hydrogen atoms in a molecule, revealing its structure.

NMR Data

Information obtained from Nuclear Magnetic Resonance spectroscopy, useful for determining molecular structure and dynamics.