Chinese yuan overvalued or undervalued

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A project has an initial cost of $48,500, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 14%. What is the project's MIRR? Round your answer to two decimal places.

You observed the bid rate of the New Zealand dollar is $.3232 while the ask rate is $.3245 at Bank X. The bid rate of a New Zealand dollar is $.3324 while the ask rate is $.3342 at Bank Y. What would be your dollar amount profit if you use $1,000,000 to execute locational arbitrage?

In China a Big Mac costs Yuan 16 (local currency), while in the US the same Big Mac costs $4.56. The exchange rate between Yuan and US dollar is Yuan 6.1341/$. According to purchasing power parity, is Chinese Yuan overvalued or undervalued? Why?

Reference no: EM132000835

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