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The Current Indirect Exchange Rate Is 12 Pesos Per Dollar

question 55

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The current indirect exchange rate is 12 pesos per dollar.The anticipated annual inflation rate is 6% in the United States and 14% in Mexico.If the cash inflow in pesos is 100,000 in one year and the discount rate is 10%,what is the present value of the 100,000 pesos in U.S.dollars after conversion from pesos to dollars using the forward exchange rate?


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Federal Government

The national government of a federated state, which holds the supreme legislative, executive, and judicial power over a country.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Social Security Administration

The Social Security Administration is a U.S. government agency responsible for administering social insurance programs, including retirement, disability, and survivors' benefits.

Rate Of Return

A measure of the profitability of an investment, calculated as a percentage of the original investment.

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