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:

American Indians

Indigenous peoples of the United States, including numerous tribes, each with their own distinct cultures and history.

European Americans

Individuals in the United States who trace their ancestry to Europe.

Insulin

A substance secreted by the pancreas that controls the levels of sugar in the blood by enabling glucose to be absorbed into body tissues.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress.