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Ymorist [56]
4 years ago
13

Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen i

n Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.
Business
1 answer:
yarga [219]4 years ago
3 0

Answer:

1 EUR = 120 JPY

Explanation:

As the purchasing power parity theory, the exchange rate of currency 1 to currency 2  = Cost of good  in currency 1 / cost of same valued item  in currency 2

In this case,  a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value, then the exchange rate between the yen and the euro

= price of Lexus in Tokyo/ price of Mercedes  in Stuttgart

= 6,000,000 JPY/ 50,000 EUR

= 120 JPY/EUR

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Answer:

B

Explanation:

Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.

It is expressed in years and fraction of years.

Initial investment    20,000

Year 1                                                 3000               17000

Year 2                                                 8000               9000

Year 3                                                 15,000

9000/15000= 0.6 years

The payback period = 2.6 years

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4 years ago
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Answer:

The correct answer is C

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So, marketing is the process of managerial and social through which the groups and the individuals obtain what they want and need by exchanging and creating products and value with others.

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3 years ago
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Explanation:

Beginning Period for Utilities = $500

Ending Period for Utilities = $700

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