You Are Expecting a Payment of 450,000PLN Three Years from Now.The

question 14

Multiple Choice

You are expecting a payment of 450,000PLN three years from now.The risk-free rate of return is 3 percent in the U.S.and 4 percent in Poland.The inflation rate is 2.5percent in the U.S.and 3 percent in Poland.Currently,you can buy 277PLN for 100USD.How much will the payment three years from now be worth in U.S.dollars?

• A)$154,751
• B)$157,677
• C)$219,511
• D)$1,317,269
• E)$1,369,888

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Definitions:

Customer's Ledger

A detailed record keeping of all transactions between a business and its customers, often part of the accounts receivable.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Accounts Receivable

Funds due to a company from its clients for goods or services rendered but payment has not been received yet.

Cash Receipt

A document or electronic record acknowledging the receipt of cash from a transaction.