Question: Question Completion Status: 36,688,950 b.$ 6,560,916 OC $ 6,489,850 d.$ 6,335,689 QUESTION 16 19 Sigma Company, a US MNC is contemplating marking a foreign investment
Question Completion Status: 36,688,950 b.$ 6,560,916 OC $ 6,489,850 d.$ 6,335,689 QUESTION 16 19 Sigma Company, a US MNC is contemplating marking a foreign investment in Thailand. The initial cost of the project is THB100,000 The annual cash flows over the two-year economic life of the project in THB are estimated as 70,000 and 80,000. The parent firm's cost of capital in dollar is 8%. Long-run inflation is forecasted to be 3% p.a. in the US and 5% pa. in Thailand. The current spot rate is THB/USD - 25.75. What is the THB equivalent cost of capital according to Fisher effect? Please select the most suitable option O a. none of these options 06.8% C. 5.94% d. 10.0996 QUESTION 17 The following information is provided for each country. Given the weight allocation is the standard deviation (risk) of this global portfolio? Close Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers
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