Re: jnu

Posted by anon_econ on Apr 14, 2012; 9:43am
URL: http://discussion-forum.276.s1.nabble.com/jnu-tp7463007p7465264.html

Hey i'm not sure about either of them but i'll try.

in the 1st one i think capital inflow-capital exports+current a/c balance=change in reserves
and X-M+net invisible receipts=current a/c balance

in the 2nd one the present value of 111 was 100 and i calculated the present value of the other income stream as 55/1.11 + 55/1.055=101.6. so he should prefer the 2nd one. am not sure if this is the way to calulate the present value in case 2..how r u getting option a?