B) t<span>ests and reviews products to help consumers make informed decisions.</span>
Answer:
The answer depends on whether the expected future spot rate is higher or lower than the spot rate
Explanation:
Based on the scenario been described in the question, where we see that expected future spot rate moves closer to the spots rate the uncovered parity rate will indicate whether the expected future spot rate is higher or lower than the spot rate
The Uncovered Interest Rate Parity (UIRP) is a financial definition that assumes that the variation in the nominal interest rates within two countries will be the same to the relative changes in the foreign exchange rate over equal period.
Answer:
Net cash flow= $66,000
Explanation:
Giving the following information:
An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the project is $30,000 and the firm’s tax rate is 40 percent.
Net cash flow= EBT - Tax + Depreciation
Net cash flow= 60,000 - (60,000*0.4) + 30,000= $66,000