Answer:
- <u>B. decreasing foreign expenses</u>
Explanation:
<em>Economic exposure</em> is the risk derived from the variation in the foreign revenues and expenses of the firm due to <em>exchange rate movements.</em>
If the<em> expenses are more sensitive to exchange rate movements than revenue</em>, means that a depreciation of the Mexican Peso would cause the expenses to increase more than revenue,
That means that the expenses would increase more than the revenue affecting the financial situation of the firm.
Hence, <em>to reduce the economic exposur</em>e, Old Main Co. should reduce its foreing expenses.
Answer:
D. Task force.
Explanation:
Task force are basically created for a specific reason. They come from various department making it a cross-functional team, and they do not report the same manager.
Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
The answer is increas taxes think bout it' if u decrease it would make it worse
Answer:
The correct answer for regular method is $2,514 and for simplified method is $1,450.
Explanation:
According to the scenario, the computation of the given data are as follows:
Regular Method:
Total home deduction = ( Real property taxes × 24%) + ( Interest on mortgage × 24%) + (Operating expenses × 24%) + ( Depreciation )
So, by putting the value, we get
Total home deduction = ( $2,400 × 24%) + ( $4,000 × 24%) + ($2,200 × 24%) + ( $450 )
= $576 + $960 + $528 + $450
= $2,514
Simplified Method:
According to simplified method, the maximum deduction per square ft. can be $5.
So, Home deduction = $5 × 290 Sq. ft.
= $1,450.