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erma4kov [3.2K]
3 years ago
10

The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation

is 4 percent. If purchasing power parity holds, at year-end the exchange rate should be approximately ______________ dollars per peso.
Business
1 answer:
stealth61 [152]3 years ago
7 0

Answer:

The exchange rate should be approximately <u>0.340364</u> dollars per peso.

Explanation:

Spot rate = 1 Argentina Peso = $0.3600

Inflation in Argentina = 10 %

U.S. inflation = 4 %

Hence Expected rate =

1Peso (1.10) = $0.3600(1.04)  

Hence

1 Peso = $0.3600(1.04) / 1.10

1 Peso = 0.340364

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Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

8 0
3 years ago
Identifying Financial Statement Line Items and Accounts Several line items and account titles are listed below. For each, indica
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Answer:

Explanation: Financial Statement

the financial statement is an annual statement stating the financial position of an organisation

Under the financial statement we have:

1. Income Statement: Expenses, Net Income

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3. Statement of stockholders equity: Contributed Capital, cash inflow for stock issued, cash outflow for dividends

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3 years ago
When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the
bija089 [108]

Answer:

False

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Under this method it is <u>at the end of the accounting year that the Inventory account is adjusted to equal the cost of the merchandise that is unsold.</u>

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4 0
3 years ago
Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $11,000. If the
frosja888 [35]

Answer:

Adjustment balance will be $13800

Explanation:

We have given estimated uncollectible accounts are $11,000

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So the adjustment balance will be equal to $11000 + $2800 = $13800

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8 0
3 years ago
On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.
ivolga24 [154]

Answer and Explanation:

The journal entries are shown below:

1  Equipment   $53,420

     To Cash  $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

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= $9,614

6 0
3 years ago
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