Find exchange rate in russian ruble and new zealand dollar

Reference no: EM131022837

Fill in the missing values in the following table. Assume that the Big Mac is selling for $4.56 in the United States. Explain whether the U.S. dollar is overvalued or undervalued relative to each of the other currencies, and predict what will happen in the future to each exchange rate if the actual exchange rate moves toward the purchasing power parity exchange rate. Finally, calculate the implied exchange rate between the Russian ruble and the New Zealand dollar and explain which currency is overvalued in terms of Big Mac purchasing power parity.

Country	Big Mac Price	Implied Exchange Rate	Actual Exchange Rate
Chile	2000 pesos	-	508.16 pesos per dollar
Israel	17.5 shekels	-	3.65 shekels per dollar
Russia	87 rubles	-	32.94 rubles per dollar
New Zealand	5.5 New Zealand - dollars		1.28 New Zealand dollars per U.S. dollar

Reference no: EM131022837

Questions Cloud

Advantage by a multinational company : Explain how the international differences in tax rules might be used to advantage by a multinational company.

Statements concerning net present value : Which one of the following statements concerning net present value (NPV) is correct? A. An investment should be accepted if, and only if, the NPV is exactly equal to zero. B. An investment should be accepted only if the NPV is equal to the initial ca..

The two most popular capital budgeting methods : Graham and Harvey (2001) found that _____ and _____ were the two most popular capital budgeting methods. A. Internal Rate of Return; Payback Period B. Internal Rate of Return; Net Present Value C. Net Present Value; Payback Period D. Modified Interna..

Profit for investment purposes : ‘The classical system of corporation tax is useful because it causes companies to retain more profit for investment purposes.' Discuss.

Find exchange rate in russian ruble and new zealand dollar : Fill in the missing values in the following table. Assume that the Big Mac is selling for $4.56 in the United States. Explain whether the U.S. dollar is overvalued or undervalued relative to each of the other currencies, and predict what will happ..

Explain the impacts of the us trade surpluses : Explain the impacts of Great Britain's trade surpluses on the Bank of England's balance sheet under the international gold standard.

Revaluation of an asset meets the ifrs : Examine whether a deferred tax liability arising from temporary differences on the revaluation of an asset meets the IFRS/US definition of a liability.

What are the nal and irr of the lease-interpret each value : Big Sky Hospital plans to obtain a new MRI that costs $2.5 million and has an estimated four-year useful life. It can obtain a bank loan for the entire amount and buy the MRI or it can lease the equipment. What are the NAL and IRR of the lease? Inter..

What is the opportunity cost of producing one more cake : What is the opportunity cost of producing one more cake if Joe is currently producing at combination A? What is the opportunity cost of producing one more cake if Joe is currently producing at combination B

User Account

All Pages