1. Compute the present value of $4,000 paid in two years using the following discount rates: 7 percent in the first year and 6 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.)
2. Compute the value in 24 years of a $2,000 deposit earning 9 percent per year. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
3. What are the three most important exchange rate influences for forecasting the future direction of exchange rates? (briefly explain each)
Why would these forecasts be vital to a multinational’s CFO?