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codeg ocin india which has a Sales and percen The W ine cost of 250 DOORS. The project is expected to return a one me payment
Multiple Choice Ο S6,231 Ο $7060 Ο S7201 Ο S7313 Ο $6,515
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Calculation of inflation adjusted risk free US Rate:
Inflation US Rate 2.20%
Risk free US Rate 2.70%
Inflation adjusted risk free US Rate: 1+Risk free US Rate-1
1+Iinflation US Rate
Inflation adjusted risk free US Rate: 1+2.7%-1
1+2.2%
Inflation adjusted risk free US Rate: 0.489%
Value of $ 100 in INR now                            6,300.00
Value of $ 100 in INR after 5 years= 6300*(1+0.489%)^5
Value of $ 100 in INR after 5 years=                            6,455.55
Value of $ 1 in INR after 5 years=                                 64.56
Payment received after 5 years in inr                       425,000.00
Payment received after 5 years in US $ $ 6,515 (approx.)
So answer is $ 6,515.
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