1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spayn [35]
3 years ago
5

You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i

n exchange for a​ year's supply of frozen shrimp. Your Thai supplier will provide you with the same supply for 3.2 million Thai baht today. If the current competitive market exchange rates are 25.36 koruna per dollar and 41.06 baht per​ dollar, what is the value of this exchange to​ you?
Business
1 answer:
fredd [130]3 years ago
4 0

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : \frac{2,200,000}{25.36}=$86,750.7886

Purchase Cost = b3,200,000

(To get USD amount : \frac{3,200,000}{41.06}=$77,934.7297

Step 2:

Profit = Sales Revenue - Purchase cost

         = $86,750.7886 - $77,934.7297

         = $8,816.0589

The value of this exchange is $8,816.05.

You might be interested in
What is human rights​
Karo-lina-s [1.5K]

Answer:

Human rights are the basic rights and freedoms that belong to every person in the world, from birth until death. ... These basic rights are based on shared values like dignity, fairness, equality, respect and independence. These values are defined and protected by law.

4 0
3 years ago
Read 2 more answers
Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Bar
zloy xaker [14]

Answer: Decrease by $70000

Explanation:

Before the Barbecue Division is eliminated, the profit gotten will be:

Revenue from Barbecue Division sales = $510,000

Less: Salaries = $110000

Less: Direct material = $315000

Profit = $70000

Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000

7 0
3 years ago
Regina, a 25-year-old professional, wants to start an investment portfolio. What strategy may her financial advisor suggesta
oksian1 [2.3K]

Answer:

A.Start a moderate portfolio and shift to high risk later in life.

Explanation:

Investment portfolio may be defined as the financial investments done by one. It is the collection or ownership of various assets and stocks, bonds, real estates, cash, etc.

In the context, Regina who is 25 year old wishes to start an investment plan. For this her financial advisor may suggest her to start her investment in a moderate portfolio and then later may shift to a high risk portfolio. This is because Regina is young and is new to investment. She is not experience enough to invest in high risk portfolio. When she gains knowledge about investments in her life then she can properly plan her investment in order to achieve maximum profit.

7 0
3 years ago
The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th
AveGali [126]

Choosing when to start a project is related to the investment timing decision.

<h3>Is an investment's timing crucial?</h3>

The following are some advantages of market timing strategy:

  • Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
  • When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>

The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.

<h3>What is an example of an investment decision?</h3>
  •  Decisions on investments can be made for the long- or short-term.
  • A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
  • A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.

learn more about investment decision here

<u>brainly.com/question/24246300</u>

#SPJ4

5 0
2 years ago
Marketing research will
sasho [114]

This practice allows a company to discover the target market and record opinions and other input from consumers regarding interest in the product

4 0
3 years ago
Read 2 more answers
Other questions:
  • Analysis of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals
    5·1 answer
  • All of the following are true statements about the relationship of education employment except:
    14·1 answer
  • Lisa changed her filing status on last year's tax return, and her standard deduction went up. Which of these could have been the
    15·1 answer
  • How are credit unions similar to banks? A. They both seek to make a profit. B. They both give out loans. C. They're both owned b
    15·1 answer
  • Suppose you are the owner of a picture frame store and your current fixed costs total $50,000 (real estate taxes, interest on a
    15·1 answer
  • This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par c
    6·1 answer
  • Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as fol
    5·1 answer
  • In double-entry accounting, where should you record money that is leaving your company to pay bills?
    14·1 answer
  • Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Ba
    11·1 answer
  • Ursa Major Solar uses Opportunity to track sales of solar energy products. The company has two separate sales teams that focus o
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!