You are a U.S.-based company. In fulfillment of a long-term contract, you are expecting a payment of
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You are a U.S.-based company. In fulfillment of a long-term contract, you are expecting a payment of 500,000PLN (Polish zloty) three years from now. The annual risk-free rate of return is 3.0% in the U.S. and 1.2% in Poland. Currently, you can buy 4.00PLN for US$1.00.
How much would you expect the zloty payment three (3) years from now to be worth in U.S. dollars?
Expert Answer:
To calculate the present value of the payment in Polish zloty PLN three years from now in US dollars ... View the full answer
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