Recall the "exchange rates" defined in our lecture: ($0$1)=0.92,($0$2)=0.85 Attempt 1/10 for 9 pts. What...
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Recall the "exchange rates" defined in our lecture: ($0$1)=0.92,($0$2)=0.85 Attempt 1/10 for 9 pts. What is the implied 'exchange rate' between time 1 and 2,($1$2) ? (that's asking, how much is $1 in two years worth in one year) Attempt 1/10 for 9 pts. What is the implied interest rate between time 1 and 2 ? Part 3 Attempt 1/10 for 9 pts. Now there is a project with three certain cashflows: a current cash input of $10MM into the project, a cash of $5MM at t=1 and $7MM at t=2 generated from the project. Suppose a buyer wishes to purchase this project but pay for it one year from now. How much should you ask for? Recall the "exchange rates" defined in our lecture: ($0$1)=0.92,($0$2)=0.85 Attempt 1/10 for 9 pts. What is the implied 'exchange rate' between time 1 and 2,($1$2) ? (that's asking, how much is $1 in two years worth in one year) Attempt 1/10 for 9 pts. What is the implied interest rate between time 1 and 2 ? Part 3 Attempt 1/10 for 9 pts. Now there is a project with three certain cashflows: a current cash input of $10MM into the project, a cash of $5MM at t=1 and $7MM at t=2 generated from the project. Suppose a buyer wishes to purchase this project but pay for it one year from now. How much should you ask for
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