By how much has the dollar cost of room at milan hilton, Financial Management

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By how much has the dollar cost of room at milan hilton

Between 1988 and 1991, the price of a room at the Milan Hilton rose from Lit 346,400 to Lit 475,000. At the same time, the exchange rate went from Lit 1,302:$1 in 1988 to Lit 1,075:$1 in 1991.

Show calculation and explain.

a. By how much has the dollar cost of a room at the Milan Hilton changed over this three-year period?

b. What has happened to the lira’s dollar value during this period?

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Financial Management: By how much has the dollar cost of room at milan hilton

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Financial Management: By how much has the dollar cost of room at milan hilton

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