You Are Expecting a Payment of NKr450,000 Three Years from Now

question 35

Multiple Choice

You are expecting a payment of NKr450,000 three years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent in Norway. The inflation rate is 2.5 percent in the U.S. and 3 percent in Norway. Currently, you can buy NKr5.94 for $1. How much will the payment three years from now be worth in U.S. dollars?

• A) $75,758
• B) $73,530
• C) $81,511
• D) $78,077
• E) $69,888

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Definitions:

Work Centre

A specific location where work tasks are performed in a manufacturing or operations setting, often characterized by specific types of processes or equipment.

Average Completion Time

Refers to the average amount of time taken to complete a task or process.

Total Processing Time

The sum of the time periods required to complete all stages of a manufacturing or production process.

Work Centre

A specific location where work tasks within a production process are carried out, often consisting of people, machines, and materials.