You Are Considering a Project in Poland Which Has an Initial

question 7

Multiple Choice

You are considering a project in Poland which has an initial cost of 250,000PLN.The project is expected to return a one-time payment of 400,000PLN 5 years from now.The risk-free rate of return is 3% in the U.S.and 4% in Poland.The inflation rate is 2% in the U.S.and 5% in Poland.Currently,you can buy 375PLN for 100USD.How much will the payment 5 years from now be worth in U.S.dollars?

• A)$101,490
• B)$142,060
• C)$1,462,350
• D)$1,489,025
• E)$1,576,515

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Definitions:

Element

A pure substance consisting of only one type of atom, distinguished by its atomic number.

LUQ

Left Upper Quadrant, a term used in medicine to refer to the upper left section of the abdomen.

Stomach

An organ of the digestive system that helps in the digestion and breakdown of food through the action of enzymes and acid.

Spleen

An organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen, which filters and stores blood as part of the immune system.