Compounded average annual inflation rate

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1) A company requires 30% internal rate of return (before taxes) in U.S. dollars on project investments in foreign countries. If the dollar is projected to devaluate 5% annually relative to the currency of Country B, what rate of return (in terms of the currency there) would be required for a project?

2) The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $6.58. What was the compounded average annual inflation rate during this period of time?

Reference no: EM132376901

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