1. A financial manager has determined that the appropriate discount rate for a foreign project is 16 percent. However, that discount rate applies in the United States using dollars. What discount rate should be used in the foreign country using the foreign currency? The inflation rate in the United States and in the foreign country is expected to be 4 percent and 8 percent, respectively.
24 percent
20 percent
16 percent
12 percent
2. Domenica invests ?$250 each quarter in a? fixed-interest mutual fund paying annual interest of 5.5 % compounded quarterly. How much will her account have in it at the end of 5 ?years? Round to the nearest dollar.
a) $17,066
b) $1,395
c) $5,839
d) $5,710