You are expecting a payment of C$250,000 two years from now. The risk-free rate of return is 2 percent in the U.S. and 2.5 percent in Canada. The inflation rate is 2 percent in the U.S. and 1.8 percent in Canada. Assume the current exchange rate is C$1 = $.85. How much will the payment two years from now be worth in U.S. dollars?
$188,650
$194,348
$199,870
$206,182
$210,391
2. Which of the following ratios must include revenue or sales data in order to be accurate?
A. Quick ratio
B. Profit margin
C. Current ratio
D. Total debt