You Are Expecting a Payment of 450,000PLN Three Years from Now.The

question 14

Multiple Choice

You are expecting a payment of 450,000PLN three 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 2.5percent in the U.S.and 3 percent in Poland.Currently,you can buy 277PLN for 100USD.How much will the payment three years from now be worth in U.S.dollars?

• A)$154,751
• B)$157,677
• C)$219,511
• D)$1,317,269
• E)$1,369,888

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Definitions:

Statement Of Owner's Equity

A financial document showing changes in the equity of a company over a certain period due to various business activities, such as earnings and withdrawals.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and equity.

Accrued Fees

Fees earned but not yet received in cash or recorded by the recipient, representing amounts for services provided.

Reversing Entry

An accounting entry that counteracts an adjusting entry, made at the beginning of the next accounting period.