Eugowra Mining company is evaluating an investment in India that produces an expected cash inflow of 2.07
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Question:
Eugowra Mining company is evaluating an investment in India that produces an expected cash inflow of 2.07 million Rupee in year 4. The Indian investment will cost 760,000 Indian rupee. The current exchange rate is AUD/INR = 51.87. The risk free interest rate in India is 4.41% p.a. and in Australia is 2.52%. Based on interest rate parity calculate the expected spot rate (AUD/INR) for year four.
Related Book For
International Accounting
ISBN: 978-1260466539
5th edition
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
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