A Canadian project has an initial cost of Can$1.8 million and is expected to produce cash inflows of Can$710,000 a year for 3 years after which time it will be worthless. The expected inflation rate in Canada is 4 percent while it is only 3 percent in the U. S. The applicable interest rate in Canada is 8 percent. The current spot rate is C$1 = $.88. What is the net present value of this project in Canadian dollars using the foreign currency approach?

a. Can$33,974.02
b. Can$32,790.05
c. Can$29,738.86
d. Can$28,721.40
e. Can$30,751.18

Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?

Matthew decides to buy expensive designer jeans. less expensive jeans are available, but the added cost of the designer brand is worth it to matthew most likely because

Which of the following are true of mortgages? a mortgage is a long-term loan secured by real estate. a borrower pays off a mortgage in a combination of principal and interest payments that result in full payment of the debt by maturity. over 80 percent of mortgage loans finance residential home purchases. all of these are true of mortgages. only a mortgage is a long-term loan secured by real estate and a borrower pays off a mortgage in a combination of principal and interest payments that result in full payment of the debt by maturity of these are true of mortgages.