You Are Considering a Project in Poland Which Has an Initial

question 51

Multiple Choice

You are considering a project in Poland which has an initial cost of 275,000PLN.The project is expected to return a one-time payment of 390,000PLN four years from now.The risk-free rate of return is 4.5 percent in the U.S.and 3 percent in Poland.The inflation rate is 4 percent in the U.S.and 2 percent in Poland.Currently,you can buy 277PLN for 100USD.How much will the payment of 390,000PLN be worth in U.S.dollars four years from now?

• A)$149,568
• B)$180,560
• C)$987,251
• D)$1,016,926
• E)$1,304,357

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Definitions:

Fill Orders

The process of completing a customer's purchase order by preparing and dispatching the ordered goods.

Delivery Cycle Time

The total time taken from receiving an order to delivering the product to the customer.

Fill Orders

The process of completing customer orders for goods or services.

Manufacturing Cycle Efficiency

a measure of the efficiency of the production process, typically calculated as the ratio of value-added time (the time spent actually transforming the product) to total cycle time.