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Alenkinab [10]
3 years ago
12

The JPY/AUD spot exchange rate is 82.42, the JPY interest rate is 0.15%, and the AUD interest rate is 4.95%. If the interest rat

es are quoted on the basis of a 360-day year, the 90-day forward points in JPY/AUD would be closest to: A. –377.0. B. –97.7. C. 98.9.
Business
1 answer:
defon3 years ago
3 0

Answer:

The answer is B. -97.7.

Explanation:

As the question gives us the spot rate, the interest rates of two countries, We can apply the covered interest parity to calculate the 90-day forward exchange rate JPY/AUD from which 90-day forward points can be derived.

F = S x ( 1+ Rjpy) / ( 1+ Raud); in which Rjpy denoted as JPY interest rate ( 0.15% per annum) while Raud is AUD interest rate ( 4.95% per annum).

F = 82.42 x (1+ 0.15% x 90/360) / ( 1 + 4.95% x 90/360) = 81.443

=> The 90-day forward points is : 100 x ( F-S) = 100 x ( 81.443 - 82.42) = -97.7

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Answer:

issues that were discussed in the meeting

Explanation:

4 0
2 years ago
The Tool Box needs to purchase a new machine costing $1.46 million. Management is estimating the machine will generate cash infl
dimulka [17.4K]

Answer:

yes, because the IRR is 12.74 percent

Explanation:

given data

present value =  $1.46 million

first year cash inflows c1 =  $223,000

next three years cash inflows c2,c3,c4 = $600,000

rate of return minimum = 12 %

to find out

firm purchase this particular machine based on its IRR

solution

we consider here IRR is = r

we apply here present value formula that is express as

present value = \frac{c1}{(1+r)} +\frac{c2}{(1+r)^2} +\frac{c3}{(1+r)^3} +\frac{c4}{(1+r)^4}  .......1

put here value  

$1.46 million = \frac{223000}{(1+r)} +\frac{600000}{(1+r)^2} +\frac{600000}{(1+r)^3} +\frac{600000}{(1+r)^4}    

solve it we get

r = 12.74%

so here IRR = 12.74% is higher than the rate of return minimum = 12%

so it will create a positive net present value of cash inflows

and project will accepted and firm purchase the machine

so we can say yes, because the IRR is 12.74 percent  

7 0
3 years ago
Carla is not wealthy but attends a school in the wealthy part of her city. She works at a grocery store after school. Other girl
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Form

Explanation:

form because it talks how she needs designer clothes to fit in in its form.handles her clothing

5 0
3 years ago
Is anyone a Steelers fan? Or Washington FT fan
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Explanation:

6 0
3 years ago
Given the following changes what is the net effect on cash? (1) Accounts Receivables increases by $150; Inventory decreases by $
Karolina [17]

Answer:

Net Cash Increase of $115

Explanation:

Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.

Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.

Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.

Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.

Net Effect on Cash = Cash inflows - Cash outflows

Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )

Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )

Net Effect on Cash = $320 - $205

Net Effect on Cash = $115

Net Cash Increase of $115

6 0
3 years ago
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