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
nordsb [41]
3 years ago
8

You want to invest in a project in Canada. The project has an initial cost of C$828,000 and is expected to produce cash inflows

of C$355,000 a year for three years. The project will be worthless after the first three years. The expected inflation rate in Canada is 4 percent while it is only 3 percent in the U.S. The applicable interest rate for the project in Canada is 12 percent. The current spot rate is C$1 = $.9126. What is the net present value of this project in Canadian dollars?
Business
1 answer:
tamaranim1 [39]3 years ago
8 0

Answer:

C$24,650

Explanation:

initial cost C$828,000

net cash flows for years 1, 2 and 3 C$355,000

discount rate 12%

the net present value in C$ = C$355,000/1.12 + C$355,000/1.12² + C$355,000/1.12³ - C$828,000 = C$316,964 + C$283,004 + C$252,682 -  C$828,000 = C$24,650

Since we are asked to determine the NPV in Canadian dollars, all we need to do is carry out the same calculations as if they were any other currency. We do not need to make any adjustments due to the exchange rate between US dollars and Canadian dollars.

You might be interested in
What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?
Pavel [41]
The major factor that contributes to the decline of occupations in industries such as textile and clothing is due to the change of technology. Through the technological advancement, innovators are able to machines that work twice as fast as human beings.
7 0
3 years ago
Read 2 more answers
Phil, age 20, is single and can be claimed as a dependent on his parent's return. He had $150 in interest income and wages of $7
Korvikt [17]

Answer: B - $7,150

Explanation: Standard taxation is an option by IRS to reduce an inidvidual taxable income. this is subject to an individuals filling status.

Phil who is aged 20, single and who can claim a dependent on his parents tax filling return. As of 2019, his standard tax deduction is limited to his earned income plus $350.

According to the above question, Phil earns $7,000 as wages plus $150 in interest income.

From the above information, Phil has a standard tax of $7,150.

3 0
3 years ago
A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's pa
tresset_1 [31]

The bond's price is $2,130.51, A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's par value is $2,000.

Current yield = annual Payment/ Market Price

Market Price = Annual Payment Current Yield

                     = (2000*6.04%)/ 0.0567

                     = 2130.511464

                     = $2,130.51

Par fee, in finance and accounting, means said fee or face cost. From this come the expressions at par, over par and under par. What does $1 par price mean?

Key Takeaways

A par price for a stock is its in-step with-share fee assigned by the organization that issues it and is frequently set at a very low amount together with one cent. A no-par inventory is issued without any unique minimal price. Neither form has any relevance to the stock's real cost in the markets.

Learn more about par value here:-brainly.com/question/20813161

#SPJ4

3 0
2 years ago
Emerson Inc. would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it had
worty [1.4K]

Answer:

Emerson Inc. should declare $2.5 per share.

Explanation:

Dividend Payout ratio is the ratio of distribution of net income earned during the period among the stockholders.

As per given data

Net Income = $1,250,000

Payout ratio = 45%

Dividend payment = 1,250,000 x 45% = $562,500

Dividend per share = $562,500 / 225,000 = $2.5 per share

6 0
3 years ago
You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person
ser-zykov [4K]

Answer:

price discrimination (third degree price discrimination)

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

4 0
3 years ago
Other questions:
  • the table you're working at keeps wobbling you decide to fix it by making a thick pad of paper from folded sheets of paper. each
    5·1 answer
  • Which one of the following should earn the most risk premium based on CAPM?
    10·1 answer
  • Which student best fills the role of group notetaker? Yuna, who is positive and considers other viewpoints Hiroto, who is focuse
    8·1 answer
  • Does a higher GDP imply high welfare. Why?
    14·1 answer
  • Knowledge Check 01 During the current year, Armstrong Corporation reported net income of $18 million and EPS of $5.00 per share.
    15·2 answers
  • You are thinking about buying a house. You find one you like that costs $400,000. You learn that your bank will give you a mortg
    14·1 answer
  • PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
    12·1 answer
  • For questions 1-10, fill in the blank with the letter of the term that best matches the
    15·1 answer
  • Harry assigns his rights under a contract with irma to his college roommate, jake. neither harry nor jake notifies irma of the a
    8·1 answer
  • calculate the unadjusted rate of return for an investment that has a net cost of $430,000 and should provide an average after-ta
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!