When a machine is in US dollar and a Japanese needs to pay in Yen, the amount should be converted into Yen.
A US Made machine cost $500
Exchange rate : 100 Yen = $1
In order to purchase the machine, a Japanese needs to pay:
= Cost of the machine in dollars × Yen per dollar
= $500 × 100
= 50,000 yen
Therefore, a machine of $500 will cost a Japanese in 50,000 Yen.
Answer:
A U.S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar, were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to reduce its estimate of the previously computed net present value.
Explanation:
The difference between the present value of cash inflows and the present value of cash outflows over a period is referred to as the net present value (NPV).
NPV is used In capital budgeting and investment planning, NPV is used to analyze the profitability of a projected investment or project.
The company should therefore reduce the estimates because it will increase the discount rate which would, in turn, impact the net present value (NPV) and drag it down to lower value.
Answer:
This new development would likely cause the MNC to LOWER its estimate of the previously computed net present value.
Explanation:
All companies making foreign direct investments are face currency exchange risks. In this case, the Algerian dinar was expected to appreciate against the US dollar, which meant that nay calculations regarding the future cash flows could be carried out considering a strong dinar.
But now, due to internal turmoil the dinar is expected to depreciate heavily and that will reduce the future cash flows and negatively affect the NVP.
Imagine that a product has an initial investment of $1 million, and you needed 10 dinars to purchase $1. Then the future cash flows for the following 5 years were 3 million dinars per year, and the company required a 10% rate of return.
Since the company is based in the US it had to calculate the cash flows in US dollars, each cash flow = $300,000.
But if the dinar depreciates 15% against the US dollar, then each cash flow will equal $255,000.
We can use an excel spreadsheet and the NPV function to calculate the NPVs for both estimated and actual scenarios.
Answer:
To find the payment necessary to amortize the loan, you can use the formula for calculating the monthly payment on a loan. For this loan amount of $12,000, an interest rate of 12% compounded monthly, and 48 monthly payments, the payment amount would be approximately $316.23. So, the correct answer is option A. $316.23.
Answer:
$4,000
Explanation:
Sam's gross income from this transaction can be calculated by subtracting the price of the car and the tractor from the cost basis of the land.
Sam's gross income = cost basis of land - price of car and tractor = $20,000 - $16,000 = $4,000
In this case Sam's gain should be considered capital gains since it is a gain made from the selling investments that are held for more than 1 year.
The gross income from the transaction where Sam traded his land (originally bought for $16,000) for a tractor and car (worth $20,000) would be $4,000. This is calculated by subtracting the initial purchase price of the land from the market value of items received in return.
Based on the information given in your question, it seems like we're trying to calculate the gross income that resulted from Sam's sale of land. Gross income is essentially the net sales minus the cost of goods sold; in this case, the 'goods' are the land. So, you simply subtract Sam's original purchase price of the land ($16,000) from the later sale price (or market value) of the car and tractor he got in exchange ($20,000)
So, you calculate it as follows:
Therefore, Sam's gross income from this whole transaction is $4,000.
#SPJ2
b) inception level
c) terminal level
d) manifestation level
Answer:
The correct answer is D
Explanation:
Manifestation level is the level where the changes or variations in the knowledge or the behavior and it could be observed or noticed. And usually the fluctuation effect need to be adequate strong in order to break or smash by the manifestation level.
It is that level where there could be fluctuation effects as well as the baseline effects.
capital good is the answer