Use the Information for the Question(s)below

question 1

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 discounting the £s and then converting into dollars is closest to:

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

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Definitions:

Sensory Nerves

Nerves that transmit sensory information from the body's periphery to the central nervous system, allowing the perception of stimuli like touch, temperature, and pain.

Penis

The male organ through which semen and urine pass.

Luteal Phase

The phase of the ovarian cycle during which a follicle becomes a corpus luteum and then degenerates.

Ovarian Cycle

The series of events in a female's body that occur from one menstruation to the next, involving ovulation and the preparation of the uterus for possible pregnancy.