You Are Analyzing a Very Low-Risk Project with an Initial $\le$

question 95

Multiple Choice

You are analyzing a very low-risk project with an initial cost of $\le$ 120,000.The project is expected to return $\le$ 40,000 the first year, $\le$ 50,000 the second year and $\le$ 60,000 the third and final year.The current spot rate is $\le$ .54.The nominal return relevant to the project is 4% in the U.K.and 3% in the U.S.Assume that uncovered interest rate parity exists.What is the net present value of this project in U.S.dollars?

• A)$33,232
• B)$34,040
• C)$34,067
• D)$34,422
• E)$35,009

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Definitions:

Muffled Word

A sound or word that is difficult to understand due to being obscured or softened, often used in experiments to study perception and auditory processing.

Interpretation

The act of explaining the meaning of something, often involving analysis or putting into context.

Relevant Clues

In cognitive psychology, relevant clues are pieces of information that are pertinent and helpful in solving a problem or understanding a situation.

Language Exposure

The amount and variety of language a person encounters in their environment, crucial for language acquisition.