You Are Considering a Project in Poland Which Has an Initial

question 70

Multiple Choice

You are considering a project in Poland which has an initial cost of 250,000PLN. The project is expected to return a one-time payment of 400,000PLN 5 years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent in Poland. The inflation rate is 2 percent in the U.S. and 5 percent in Poland. Currently,you can buy 375PLN for 100USD. How much will the payment 5 years from now be worth in U.S. dollars?

• A) $101,490
• B) $142,060
• C) $1,462,350
• D) $1,489,025
• E) $1,576,515

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Definitions:

Corporate Human Capital

Company-specific knowledge, skills, and abilities that transcend any particular location within the entire global company, not simply the collective knowledge of the staff at headquarters.

Location Specificity

Refers to the unique attributes or characteristics that are specific to a particular geographic location.

Company Specificity

Features or characteristics unique to a particular company that differentiate it from its competitors.

Local Human Capital

The collective skills, knowledge, and experience possessed by individuals within a local region, contributing to its economic development.