Expected exchange rate-identified an investment project

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Reference no: EM131489009

Assume inflation is expected to be 3% in the US next year cmopared with 10% in AUS. If the us dollar of an aus dollar is currently at $.50 what is the expected exchange rate one year from now based on PPP?

a 1.03

b .468

c .515

d .486

e .534

Toadies, Inc., has identified an investment project with the following cash flows.

Year Cash Flow

1 $1211

2 $1381

3 $1402

4 $1455

If the discount rate is 17.4 percent, what is the future value of the cash flows in year 4? (Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)

Reference no: EM131489009

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