Use the Information for the Question(s)below

question 27

Multiple Choice

Use the information for the question(s) below.
You are a U.S.investor who is trying to calculate the present value of £5 million cash inflow that will occur one year in the future.The spot exchange rate is S = $1.8839/£ and the forward rate is F1 = $1.8862/£.The appropriate dollar discount rate for this cash flow is 5.32% and the appropriate £ discount rate is 5.24%.
-The present value of the £5 million cash inflow computed by first converting into dollars and then discounting is closest to:

• A)$8,950,495.
• B)$8,954,615.
• C)$8,943,695.
• D)$8,961,420.

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Definitions:

Termination

The process or action of bringing something, such as a program, project, or professional relationship, to an end.

Client Anger

Emotional frustration or agitation experienced by clients, often expressed during service or counseling sessions.

Hybrid Models

A combination of two or more different types of models, techniques, or theories to achieve the best outcomes in specific contexts.

Evaluation

The process of assessing or judging the value, nature, or quality of something.