Answer:
$726,370.51
Explanation:
The present value of the contract is the sum of the discounted cash flows.
Present value can be calculated using a financial calculator:
Cash flow in year 0 = $250,000
Cash flow in year 1 = $200,000
Cash flow in year 2 = $400,000
Discount rate = 15%
Present value = $726,370.51
I hope my answer helps you
Answer: Bank
Explanation:
From the question, we are told that Jose and Jan have inherited $200,000 from their parents and that they are happy that their money in this financial institution is insured by the FDIC and they have physical access to their financial institution when they travel since it is many states all over the nation.
Based on this explanation, they have chosen a bank. A bank is a financial institution that collects deposit from the public, make loans, keep valuables etc. Banks also provide functions such as currency exchange, and wealth management.
Answer:
The correct answer is c. reduces; reduce.
Explanation:
Economic exposure is a type of exposure to exchange rate risk caused by the effect of unexpected currency fluctuations on a company's cash flows, foreign investment, and future earnings.
Economic exposure, also known as operating exposure, can have a substantial impact on a company's market value, as it has far-reaching effects and is long-term in nature. Companies can protect themselves against unexpected currency fluctuations by investing in currency markets (FX).
Unlike transaction exposure and conversion exposure (the other two types of currency exposure), economic exposure is difficult to measure accurately and therefore difficult to hedge. Economic exposure is also relatively difficult to hedge because it faces unexpected changes in exchange rates, unlike expected changes in exchange rates, which form the basis of companies' budget forecasts.