You are analyzing a project with an initial cost of £130,000. the project is expected to return £20,000 the first year, £50,000 the second year, and £90,000 the third and final year. there is no salvage value. the current spot rate is £.6211. the nominal risk-free return is 5.5 percent in the u. k. and 6 percent in the u. s. the return relevant to the project is 14 percent in the u. s. assume that uncovered interest rate parity exists. what is the net present value of this project in u. s. dollars?

Why should managers invest any excess cash

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2