Use the Information for the Question(s)below

question 10

Multiple Choice

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

• A)$8,961,420
• B)$8,950,495
• C)$8,954,615
• D)$8,943,695
• E)$9,004,167

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Definitions:

Interventions

Actions taken to improve a situation, especially in health, educational, or social contexts, through direct involvement and support.

Punishment

The imposition of a disadvantageous consequence or removal of a positive stimulus following a behavior, with the aim of decreasing the likelihood of that behavior occurring in the future.

Implementing Punishment

The process of applying penalties or consequences for undesirable behaviors, with the intention of reducing or eliminating those behaviors.

Schools

Institutions dedicated to the education and development of students through structured courses, curricula, and social interaction.