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TiliK225 [7]
3 years ago
12

You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF

21 million. The cash flows from the project would be SF 5.9 million per year for the next five years. The dollar required return is 14 percent per year, and the current exchange rate is SF 1.11. The going rate on Eurodollars is 4 percent per year. It is 2 percent per year on Euroswiss.
Use the approximate form of interest rate parity in calculating the expected spot rates.

A) Convert the projected franc flows into dollar flows and calculate the NPV.

B) What is the required return on franc flows?

C) What is the NPV of the project in Swiss francs?

D) What is the NPV in dollars if you convert the franc NPV to dollars?

Business
1 answer:
Marysya12 [62]3 years ago
7 0

Answer:

Explanation:

First we need to calculate the expected spot rates for the next 5 years using IRP....

Please Kindly go through the attached files for how this and other questions you require answers to are solved step by step.

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The Sarbanes-Oxley Act in 2002 was created to protect consumers against false advertising by monopolies.
Igoryamba

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It required chief executive officers (CEOs) and chief financial officers (CFOs) to personally attest to the correctness of the information in financial reports and to affirm that controls and procedures were in place to evaluate and verify that accuracy.

In reality, CEOs and CFOs had to personally certify that financial reports complied with Securities and Exchange Commission(SEC) rules by signing them. Failure to comply with this might result in fines of up to $15 million and 20-year prison terms.

Hence, the given statement is false.

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3 0
2 years ago
Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National
dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

<em>Update the Cash Book (Bank Column) Balance</em>

<u>Cash Book (Bank Column)</u>

Debit :

Balance as at August 31                     $1,620

Rent collection                                      $375

Total                                                    $1,995

Credit :

Service charge                                         $9

Dishonored Checks                              $137

Printing Charge                                      $20

Error : Understatement                        $252

Balance as per updated CB              $1,577

Total                                                    $1,995

Step 2

<em>Prepare a Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement as at August 31</u>

Balance at Bank as per updated Cash Book       $1,577

Add Unpresented Checks                                       $756

Less Lodgements not yet credited                     ($1,695)

Balance as per Bank Statement                             $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0
3 years ago
An example of an ad valorem tax is
MA_775_DIABLO [31]
Municipal Property Taxes 
7 0
3 years ago
SCREEN SHOT / MAX POINTS / WILL MARK BRAINLIEST Match the term to the definition. mixed economy The method a country uses to ans
Stolb23 [73]

Answer:

Mixed economy - combined elements of the command and market economies

Market economy- The resources are owned and controlled by the people of the country

Economic system - The method a country uses to answer the three economic questions market economy

Traditional economy- Goods and services are produced the way it has always been done

Capitalism- The private ownership of economic resources by individuals, rather than by the government

Command economy- The resources are owned and controlled by the government command economy

3 0
3 years ago
The City of Troy collects its annual property taxes late in its fiscal year. Consequently, each year it must finance part of its
Digiron [165]

Answer:

A. $1,460,000

B. General Fund:

Dr Cash $1,460,000

Cr Tax Anticipation Notes Payable $1,460,000

Governmental Activities:

Dr Cash $1,460,000

Cr Tax Anticipation Note Payable $1,460,000

C. General Fund:

Dr Tax Anticipation Note Payable $1,460,000

Dr Expenditures $43,800

Cr Cash $1,503,800

Governmental Activities:

Dr. Tax Anticipation Note Payable $1,460,000

Dr Expenses-General Government $43,800

Cr Cash $1,503,800

Explanation:

A. Calculatation for the estimated amount of tax anticipation financing

Estimated Expenditures Requirements:

Budgeted Expenditure, remainder $2,500,000

Add Current Liabilities Payable $830,000

Total $3,330,000

Estimated Resources Available:

Cash on hand $770,000

Add Collection of budgeted revenues and delinquent property taxes $1,100,000

Total $1,870,000

Estimated Anticipation Note Financing $1,460,000

($3,330,000-$1,870,000)

Therefore the Estimated Anticipation Note Financing is $1,460,000

B. Preparation of the journal entry to record the issuance of the tax anticipation notes in the general journals

General Fund:

Dr Cash $1,460,000

Cr Tax Anticipation Notes Payable $1,460,000

( To record the insuance of tax anticipation note payable)

Governmental Activities:

Dr Cash $1,460,000

Cr Tax Anticipation Note Payable $1,460,000

C. Preparation of the general journals of the General Fund and governmental activities

General Fund:

Dr Tax Anticipation Note Payable $1,460,000

Dr Expenditures $43,800

(1,460,000*6%*6/12)

Cr Cash $1,503,800

(1,460,000+43,800)

Governmental Activities:

Dr. Tax Anticipation Note Payable $1,460,000

Dr Expenses-General Government $43,800

(1,460,000*6%*6/12)

Cr Cash $1,503,800

(1,460,000+43,800)

(Being the payment for tax and interest)

7 0
4 years ago
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