Two exchange rates calculate cross rate for pound euro, Financial Management

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Two exchange rates calculate cross rate for pound euro

1. You win the lottery. Lottery commission is offering two choices: $2 million today and no other payments or $150,000 for twenty years. You can earn 8% on your investments. Which option would you choose and why? Show work

2. Two exchange rates:

British pound/ US dollar = 0.74 pounds

Euro/ US Dollar = 0.84 euros

- calculate cross rate for pound/ euro

-calculate cross rate for euro/ pound

Show work

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Financial Management: Two exchange rates calculate cross rate for pound euro

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