1. What is the business reason for China Noah’s potential currency exposure? Does the company really need to subject itself to substantial exchange rate risk? Is the risk material to China Noah? Do you think China Noah should hedge?
2. What is the present value of an annuity of $5,800 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value.