Assume the current exchange rate

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Reference no: EM131605905

You are expecting a payment of C$250,000 two years from now. The risk-free rate of return is 2 percent in the U.S. and 2.5 percent in Canada. The inflation rate is 2 percent in the U.S. and 1.8 percent in Canada. Assume the current exchange rate is C$1 = $.85. How much will the payment two years from now be worth in U.S. dollars?

$188,650

$194,348

$199,870

$206,182

$210,391

2. Which of the following ratios must include revenue or sales data in order to be accurate?

A. Quick ratio

B. Profit margin

C. Current ratio

D. Total debt

Reference no: EM131605905

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