Question: 4 Part 3 Attempt 2/10 for 9 pts. Now there is a project with three certain cashflows: a current cash input of $10MM into the

Part 3 Attempt 2/10 for 9 pts. Now there is a project with three certain cashflows: a current cash input of $10MM into the project, a cash of $5MM at t = 1 and $7MM at t = 2 generated from the project. Suppose a buyer wishes to purchase this project but pay for it one year from now. How much should you ask for? 3+ decimals SubmitIntro Recall the "exchange rates" defined in our lecture: = 0.92, So = 0.85 Part 1 Attempt 1/10 for 10 pts. What is the implied 'exchange rate" between time 1 and 2, 7 (that's asking, how much is $1 in two years worth in one year) 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the implied interest rate between time 1 and 2 ? 8.235% Correct 0.85 The "exchange rate" = 0.9239, therefore 0.92 0.9239 . (1 + 71 2) = 1

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