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One year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 90 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock? 28.67% 33.21% 28.38% 26.40% 32.93% Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 142.0 million yen, when the exchange rate was 140.0 yen per dollar. In order to close the sale, DeGraw agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction. The terms were net 6 months. If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would DeGraw actually receive after it exchanged yen for U.S. dollars? $993,264.25 $919,689.12 $744,948.19 $938,082.90 $1.030.051.81 Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 14.50% Year 1 2 3 Cash flows -$1.000 $350 $350 $350 $350 9.91 08.11 11.42 9.43 08.77 Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative). in which case it will be rejected. WACC: 10.00% Year 0 1 2 3 4 Cash flows $975 $300 $320 $340 $360 11.98% 14.10% 9.16% 13.04% 11.75%

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