You Are Considering a Project in India Which Has an Initial

question 24

Multiple Choice

You are considering a project in India which has an initial cost of 250,000RS.The project is expected to return a one-time payment of 425,000RS 5 years from now.The risk-free rate of return is 2.7 percent in the United States and 4.3 percent in India.The inflation rate is 2.2 percent in the United States and 5.3 percent in India.Currently,you can buy 6,300RS for $100.How much will the payment 5 years from now be worth in U.S.dollars?

• A)$6,231
• B)$7,060
• C)$7,201
• D)$7,313
• E)$6,515

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University of Leipzig

The University of Leipzig is a renowned research university located in Leipzig, Germany, established in 1409, making it one of the world's oldest universities.

Wilhelm Wundt

A German psychologist widely considered the father of experimental psychology, who established the first psychological laboratory.

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