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You are a U.S. 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/£ 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 (PV) of the £5 million cash inflow computed by first converting into dollars and then discounting is closest to ________.
Purchase Price
The amount of money paid or agreed to be paid to buy something.
Stock Price
The cost or value of a single share of a company's stock, fluctuating based on supply and demand in the market.
Median
The middle value in a sorted list of numbers.
Mode
The value that appears most frequently in a set of data.
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