Question

You are considering a project in India which has anal cost of 250 DOORS The project is expected to retum a one time payment o


Multiple Choice ο $6,231 Ο $7060 ο Ο S7201 ο $7,313 Ο S6515 S6 515
n o 250 expected daw hthew 22 n The d umane me payment of 25.000RS 5 years from now. The tree rate of return is 27 percent in
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Answer:

Current rate= 6300/100 = 63

E(S)5 = (6300INR/100USD) [1 + (0.043 - 0.027)]5 = 6.820

Payment = 425,000INR ($1/6.820INR) = $6231

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