Question: Recall the exchange rates defined in our lecture: ( $ _ 1 / $ _ 0 ) = 0 . 9 2 , ( $

Recall the "exchange rates" defined in our lecture: ($_1/$_0)=0.92,($_2/$_0)=0.88 Attempt 1/10 for 10 pts. What is the implied 'exchange rate' between time 1 and 2,($_2/$_1)?(that's asking, how much is $ 1 in two years worth in one year)What is the implied interest rate between time 1 and 2? Attempt 1/10 for 10 pts. Now there is a project with three certain cashflows: a current cash input of $ 10 MM into the project, a cash of $ 5 MM at t=1 and $ 7 MM 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?

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