A US Firm Invested $800,000 in a Project in India When

question 24

Essay

A U.S. firm invested $800,000 in a project in India when the exchange rate was 43.8789
rupees per dollar. At the end of a year, the project produced a cash flow of 50 million
rupees, and the exchange rate was 40.5669 rupees per dollar. What was the rate of
return on the currency? What was the rate of return on the project? What was the total
rate of return earned by the U.S. firm?

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Definitions:

Norms

Established standards of behavior or beliefs that are accepted and expected within a society or group.

Group Cohesiveness

The extent to which members of a group support and validate one another while working to achieve a common goal.

Expected Behaviours

The actions or reactions anticipated from a person in a given situation based on social norms or organizational policies.

Status Symbols

Status symbols are items or indicators that signify the social position or status of an individual within a community, often associated with wealth, occupation, or prestige.