The Current Indirect Exchange Rate Is 12 Pesos Per Dollar

question 55

Multiple Choice

The current indirect exchange rate is 12 pesos per dollar.The anticipated annual inflation rate is 6% in the United States and 14% in Mexico.If the cash inflow in pesos is 100,000 in one year and the discount rate is 10%,what is the present value of the 100,000 pesos in U.S.dollars after conversion from pesos to dollars using the forward exchange rate?

• A)$6,145.21
• B)$6246.21
• C)$7,044.13
• D)$8,348.21

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Mutual Agency

A principle in partnership where each partner is both an agent and a principal to the partnership, authorized to bind the partnership in contracts and agreements.

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