1. You are evaluating an investment by calculating the PV from its expected cash flows. Which of the following would cause a higher PV?
A. The discount rate decreases. B. The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same. C. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years. D. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years. E. Both a and c.
2. Propose the meaning of cross-rate consistency and how MNE’s utilize this concept.
3. What is one thing is moving the US equity markets?