Excess cash in argentina at an annual interest

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A U.S. company is considering investing $5 million in excess cash in Argentina at an annual interest rate of 65 percent. The U.S. interest rate is 7 percent. (1) By how much would the Argentine peso have to depreciate to cause such a strategy to backfire? (2) What other factors should the U.S. company consider before making such an investment?

Reference no: EM132202890

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