Information for 1 - 14 Annie, a wealthy Houstonian, invests $3.0 million in a mining venture in Mexico. The on going concem has generated free cash flows of MXP21 million per year, and Americarn geologists project that it will continue to do so for the next three years. Annie requires a rate of return of 20 percent in USD. The current spot rate is $0.08/MXP, and currently nominal interest rates on one-to-three year government securities in the US are: 1%, 2% and 3.0%. In Mexico they are: 596, 8%, and 12%. Hint: To display 4 decimals,"2d function, disp. 4" Hint: Ft+r-St[(1 + |dy(1+1)rn 1. If Annie hedged with forward contracts, what would be the forward rate for year 11? a. $0.0770 b. 0.0622 c. 0.0709 d. 0.0714 2. What would be the forward rate for year 2? a. $0.0770 b. 0.0622 c. 0.0709 d. 0.0714 3. What would be the forward rate for year 3? a. $0.0769 b. 0.0622 с. 0.0709 d. 0.0714. 4. What would be the expected USD cash inflow for the first year? Hint: Enter the forward rate by hand. A) $1,619,200 B) $1,488,900 C) S1,500,000 D) $1,617,000 E) $1,790,000. 5) What is the expected USD cash inflow for the second year? A) $ 1 ,628,234 B) $1,499,400 C) $1,413,000 D) $1,306,673 E) S1,613,120. 6) What is the expected cash inflow for the third year? A) $1,628,234 B) $1,499,400 C) $1,413,000 D) S1,510,245 Information for 1 - 14 Annie, a wealthy Houstonian, invests $3.0 million in a mining venture in Mexico. The on going concem has generated free cash flows of MXP21 million per year, and Americarn geologists project that it will continue to do so for the next three years. Annie requires a rate of return of 20 percent in USD. The current spot rate is $0.08/MXP, and currently nominal interest rates on one-to-three year government securities in the US are: 1%, 2% and 3.0%. In Mexico they are: 596, 8%, and 12%. Hint: To display 4 decimals,"2d function, disp. 4" Hint: Ft+r-St[(1 + |dy(1+1)rn 1. If Annie hedged with forward contracts, what would be the forward rate for year 11? a. $0.0770 b. 0.0622 c. 0.0709 d. 0.0714 2. What would be the forward rate for year 2? a. $0.0770 b. 0.0622 c. 0.0709 d. 0.0714 3. What would be the forward rate for year 3? a. $0.0769 b. 0.0622 с. 0.0709 d. 0.0714. 4. What would be the expected USD cash inflow for the first year? Hint: Enter the forward rate by hand. A) $1,619,200 B) $1,488,900 C) S1,500,000 D) $1,617,000 E) $1,790,000. 5) What is the expected USD cash inflow for the second year? A) $ 1 ,628,234 B) $1,499,400 C) $1,413,000 D) $1,306,673 E) S1,613,120. 6) What is the expected cash inflow for the third year? A) $1,628,234 B) $1,499,400 C) $1,413,000 D) S1,510,245