32. If the exchange rate between th

32. If the exchange rate between the U.S. dollar and the Japanese yen is $0.00745 per yen, the dollar interest rate is 6% per year, and the Japanese interest rate is 7% per year, what is the “break-even” value of the future dollar/yen exchange rate one year from now?a) $135.49 per yenb) $134.23 per yenc) $0.00752 per yend) $0.00738 per yenAnswer: (d)33. Consider the situation where you are trying to decide if you should invest in a Swiss project or an American project. Both projects require an initial outlay of $15,000. The Swiss project will pay you 17,100 Swiss Francs per year for 6 years, whereas the American one will pay you $11,000 per year for 6 years. The dollar interest rate is 5% per year, the Swiss Franc interest rate is 6% per year, and the current dollar price of a Swiss Franc is $0.68 per Swiss Franc. Which project has the higher NPV? a) the U.S. project; its NPV is $55,832b) the U.S. project; its NPV is $40,833c) the Swiss project; its NPV is $42,179d) the Swiss project; its NPV is $57,178Answer: (c)34. The ________ is the rate denominated in dollars or in some other currency, and the ________ is denominated in units of consumer goods.a) nominal interest rate; inflation interest rateb) nominal interest rate; real interest ratec) real interest rate; inflation interest rated) real interest rate; nominal interest rateAnswer: (b)35. Consider the situation where you are trying to decide if you should invest in a British project or U.S. project. Both projects require an initial outlay of $55,000. The British project will pay you 30,000 pounds per year for 6 years, whereas the American one will generate $40,000 per year for 6 years. The British interest rate is 5% per year, and the American interest rate is 6% per year; the current dollar price of a pound sterling is $1.6320 per pound sterling. Which project has the higher NPV?a) choose the U.S. one, it has a NPV of $196,693b) choose the U.S. one, it has a NPV of $141,693c) choose the British one, it has a NPV of $248,506d) choose the British one, it has a NPV of $193,506