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andrezito [222]
2 years ago
12

You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to app

reciate by 2%. Your effective return from this investment is ______.
A. 8.00%
B. 6.00%
C. 10.16%
D. 5.88%
E. 10%
Business
1 answer:
SashulF [63]2 years ago
8 0

Answer:

C. 10.16%

Explanation:

Appreciation of a currency increases the value of one's return on investment depending on the percentage of appreciation.

Original interest rate before appreciation = 8%

Since the interest rate appreciated by 2%,

2% of 8 will give

(\frac{2}{100}\times 8)=0.16%

New value of interest = 8% + 0.16% = 8.16%

Effective return on investment = 8.16% + 2 % = 10.16%

∴The effective return from the the investment is = 10.16%

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Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou
Natali [406]

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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3 years ago
1. The efforts of one good worker
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Answer:

Modeling

Explanation:

The efforts of one good worker can often motivate others to reach their potential through a process called modeling. In this process, the person who is setting an example and motivating others to achieve the very best of their potential serves as the best role model for others. When people work in an organization, or in any team or groups, modeling plays an important part there. Managers can motivate their employees and get best and maximum out of them in order to get the work done effectively and efficiently.

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2 years ago
Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully deprecia
sineoko [7]

Answer:

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Explanation:

let Z be the annual minimum cash flow

The internal rate of approach can be used here, in other words, the rate of return at which capital outlay of $2000 is equal present values of future cash flows

In year 1, present value of cash =X/discount factor

year 1 PV=Z/(1+i)^1

year 2 PV=Z/(1+i)^2

year 3=Z/(1+i)^3

Hence,

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Solving for Z above would give the minimum annual cash flow that must be generated for the computer to worth the purchase

Assuming i, interest rate on financing is 12%=0.12

Z can be computed thus:

$2000=Z(1/(1+0.12)^1+(1/(1+0.12)^2+(1+0.12)^3)

$2000=Z*3.09497902

Z=$2000/3.09497902

Z=$646.21

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3 years ago
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What is the topic about? I need more details.

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3 years ago
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<h2>Basic research is the least likely to result in product innovation that have near-term commercial application</h2>

Explanation:

Basic research, is otherwise called pure research. This is the first step in production innovation. This is followed by "applied research", then "innovation development", then to go for "production-sales-market".

The information gathered here will be very light or a starter. It is not possible to foresee all the outcomes or the benefits which is achieved in the basic research.

We cannot even predict the types of research knowledge which might add a value to the future changes

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