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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:
Sample Size
The number of observations or data points collected in a statistical sample.
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.
Power Of Test
The probability that a statistical test will reject a false null hypothesis, correctly identifying a true effect.
Net Weight
The weight of a product without the weight of its packaging, often an important measure in commerce for products sold by weight.
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