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kompoz [17]
3 years ago
11

When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign proj

ect, inflation ___ included explicitly in the cash flow analysis, and debt payments by the subsidiary ____ included explicitly in the cash flow analysis. a. should definitely not be; should definitely not be b. should be; should definitely not be c. should be; should be d. should definitely not be; should be
Business
1 answer:
7nadin3 [17]3 years ago
6 0

Answer:

b. should be; should definitely not be

Explanation:

When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.

Inflation and movements in exchange rates reduces and impacts the value of cashflows and the real returns to be derived from an investment and must be considered in every investment analysis to take account of the time value of money.

Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted

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Pam is in need of cash right now and wants to sell the rights to a $1,000 cash flow that she will receive 5 years from today. If
Virty [35]

Answer:

Fair price =$635.23

Explanation:

<em>Th fair price that he should be willing to pay is the present value of the $1000 expected in 5 years time.</em>

<em>Present value (PV) is the worth today if a future amount is discounted at a particular rate of interest.</em>

PV = FV × (1+r)^(-n)

PV - present value = ?

FV -Future value - 1000,

r- discount rate - 9.5%,

n - future date - 5

PV = 1,000 × (1.0950^(-5)

PV = 1,000 × 0.6352

PV =635.2276653

Fair price =$635.23

8 0
2 years ago
The number of employees in a company is reduced in the ratio 3 : 2 and the salary of each employee is increased in the ratio 4 :
Doss [256]

Answer:

The initial expenditure of the company on salary is Rs. 72.000

Explanation:

First we need to express the employees ratio in letter

3A=B

2C=D

A and C being the amount of employees

B the salary before, D the salary after

They say the salary after is the slary before minus Rs. 12.000

we can express this as D=B-12.000

We know to that the salary of each employee increased 4 to 5

Then C=(5/4)A or A=(4/5)C

We can have the following equation

2((5/4)A)=B-12.000

A=(2/5)(B-12.000)

we use this in the first expression

3(2/5)(B-12.000)=B

1,2B-14400=B

0,2B=14400

B=72.000

6 0
3 years ago
ABC opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability policy was $5
Whitepunk [10]

Answer:

The balance in ABC's Prepaid insurance-account as on Dec 31, 2018 is <em>$27,000</em>

Explanation:

Liability policy  = ($54,000 / 18) × 6 months

Liability policy = $18,000

Crop damage policy = ($18,000 x 12 / 24)

Crop damage policy = $9,000

ABC's Prepaid insurance-account balance as on Dec 31, 2018 = $27,000

Thus,

Total Liability insurance period = 18

Now,

Expired period period - 12 months ( Jan 1, 2016 to Dec 31, 2016 )

Unexpired period   = (18 - 12) months = 6 months

4 0
2 years ago
A codec converts an incoming digital signal to an analog signal for transmission over an analog network. True False
Serhud [2]

Answer: false

Explanation: A code - decoder, or codec for short, is an algorithm that encodes data by decompressing data that is recieved, and compresses data for a faster transmission. Codecs are normally used to digitize video or audio signal for transmission. In electronics, a DAC, or digital - to - analog converter can be used to convert a digital signal to an analog signal over an analog network.

7 0
2 years ago
Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result o
guajiro [1.7K]

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

<h3>What are floating exchange rates?</h3>
  • A floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which the value of a currency is permitted to fluctuate in reaction to foreign exchange market occurrences.
  • A floating currency is one that uses a floating exchange rate, as opposed to a fixed currency, the value of which is determined in terms of material items, another currency, or a group of currencies (the idea of the last being to reduce currency fluctuations).
  • When the international value of a country's currency rises, so do its imports, and vice versa.

As it is given in the description itself, when the international value of a country's currency rises, so do its imports, and vice versa.

Therefore, Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

Know more about floating exchange rates here:

brainly.com/question/11160294

#SPL4

The question you are looking for is here:

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will ____.

3 0
2 years ago
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