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IgorLugansk [536]
3 years ago
13

"The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist: You

need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:"

Business
1 answer:
GuDViN [60]3 years ago
8 0

Answer:

$96,914

Explanation:

 360‑day borrowing rate in  Swiss as given is 5%

rate =  100 + 5 = 105%

Total = 200,000/105% = SF190,476

The spot rate of the Swiss franc is $.48

Therefore SF190,476 = SF190,476  × $.48 = $91,428

360‑day deposit rate in  US as given       6%

Total Invest = 6 % of $91,428 + $91,428

= $5485.68 + $91,428 = $96,914

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the answer is =32291.67.

The firm should take the advantage of the new quantity as the total cost is lesser as compared with the  old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

Explanation:

Solution

Given that:

The Annual demand D = 5000 boxes

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The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6

The ordering costs S = $25.00

Now,

EOQ =√2DS/H

EOQ =√(2*5000 * 25)/1.6

Thus,

EOQ =Q = 395.28

The Total cost = DC + (Q/2)H + (D/Q)S

= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25

Then,

T = 32000 + 316.23 + 316.23

= 32632.46

So,

The new supplier has offered to sell the same item for the amount of  $6.00 if Q = 3,000 boxes

Hence,

The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25

= 30000 + 2250 + 41.67

= 32291.67

Therefore, The firm should take the  advantage of the new quantity as the total cost is lesser as compared with the  old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

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On December 31, 2013, Stable Company sold a piece of equipment that was purchased on January 1, 2008. The equipment originally c
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Answer:

The company should recognize a gain on disposal of $29500

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The gain/loss on sale = 257000 - 227500  =  $29500 gain

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