You are considering a project in India which has an initial cost of 1,050,000RS. The project is
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You are considering a project in India which has an initial cost of 1,050,000RS. The project is expected to return a one-time payment of 1,970,000RS five years from now. The risk-free rate of return is 2 percent in the U.S. and 4.5 percent in India. The inflation rate is 1.7 percent in the U.S. and 4 percent in India. Currently, you can buy 5,200RS for $100. How much will the payment five years from now be worth in U.S. dollars?
A.$27,380
B.$29,006
C.$31,579
D.$33,484
E.$35,412
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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