Question: - Using what you've learned in class about prices, inflation, interest and exchange rates, complete the following template - Fill in the pink cells with

- Using what you've learned in class about prices, inflation, interest and exchange rates, complete the following template
- Fill in the pink cells with the appropriate calculations for each of tasks 1-5, then complete the discussion portion of Task 6
- Be sure to include the calculations you use in your submission so we can see your work N0P2025- Using what youve learned in class about prices, inflation, interest and exchange rates, complete the following

- Using what you've learned in class about prices, inflation, interest and exchange rates, complete the fallowing template Fill in the pink cells with the appropriate calculations for cach of tasks 1-5, then complete the discussion portion of Task 6 - Be sure to include the calculations you use in your submission so we can see your work ABCD M N P 3 General Assumptions Price of an input (in 2020) Length of operation Exchange rate in 2020 (CAD/USD) Real interest rate in Canada Annual inflation in Canada Annual Inflation in the US $20 USD 5 Years 1.40 3.00% % 1.50% % 1.10% % Year 4 6. 7 9 10 Years 2020 2021 2022 2023 2024 2025 11 12 Task 1: Price Index 13 Price index in Canada (base: 2020) Price index in the US (base: 2020) 14 15 16 Task 2: Projection of nominal price in original currency Real price of input Nominal price of input USD USD 17 18 19 20 Task 3: Projection of nominal exchange rate Real exchange rate (CAD/USD) Relative price index (base: 2020) Nominal exchange rate (CAD/USD) 21 22 23 24 25 Task 4: Projection of nominal price in Canadian dollars 26 Norminal price of input CAD 27 28 Task 5: Real interest rate 29 Real interest rate in Canada 30 Inlation in Canada 31 Nominal interest rate in Canada 32 33 Task 6: 34 It is expected that the US Inflation rate will increase over the next 10 years. What Impact will that Increase have on the real price of the Input?

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