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labwork [276]
3 years ago
11

Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou

tflow variables can sometimes be indirect and therefore different from what is expected. b. In general, depreciation of the firm's local currency causes a decrease in both cash inflows and outflows. c. Even purely domestic firms can be affected by economic exposure. d. The degree of economic exposure will likely be much greater for a firm involved in international business than for a purely domestic firm.
Business
1 answer:
Natali [406]3 years ago
8 0

Answer:

Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.

Explanation:

The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.

Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.

Option C and D are also incorrect because domestic firms don't face any economic exposure.

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Answer:

19.91 %

Explanation:

The Internal Rate of Return (IRR) is the Interest rate that will make the present values of cashflows equal to the price of the Initial investment.

<u>Calculation of IRR of Project A using a Financial Calculator : </u>

($100,000) CFj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

$30,000         Cfj

Shift IRR/YR 19.9054 or 19.91 %

6 0
3 years ago
A major difference between a business plan and a marketing plan is that a business plan will include ________ while a marketing
Sonja [21]
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3 years ago
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible A
marin [14]

Answer:

$5,230

Explanation:

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Credit balance in allowance for uncollectible accounts = $970

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= $310,000 × 2% - $970

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7 0
3 years ago
When individuals use all available information about an economic variable to make a decision, expectations are?
monitta

when individuals use all available information about an economic variable to make a decision, expectations are   -rational

What is economic variable?

An economic variable is any measurement that helps to consider how an economy may function . for instance  population, poverty rate, inflation, and available resources.

What are the five economic variables?

There are 5 common economic variable that are considered :

output, gross domestic product ( GDP ), production, income, and expenditures.

What factors cause economic growth?

Basically , there are two main cause  of economic growth: growth in the size of the workforce and growth in the production activity (output per hour worked) of that workforce.

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1 year ago
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