Answer:
Net Present Value = $28756.79
Explanation:
First we need find the real rate of interest
Real rate of interest = (Nominal rate of interest - Inflation rate )
Real Rate of interest = (10.76% - 4%)
Real of Interest = 6.76%
Now using stream of cash flows and discount the at 6.76%
0 -12800 1.000
1 10000 0.937
2 10000 0.877
3 10000 0.822
4 10000 0.770
5 10000 0.721
Through multiplying discount value with cash flow we get the discounted value of cash flows.
0 -12800 x 1.000 = -12800
1 10000 x 0.937 = 9370
2 10000 x 0.877 = 8770
3 10000 x 0.822 = 8220
4 10000 x 0.770 = 7700
5 10000 x 0.721 = 7210
Adding the discounted cash flows we get the value of Net present value and that is equal to $28756.79
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.
Answer: Best prospects list
Explanation: The best prospects list is usually issued to potential exporters by the International Trade Organization which serves functions such as facilitating trade operations between countries by eliminating several trading issues such as negotiating and reducing trade tariff, regulating restrictive policies and also providing useful information necessary for successful trading to traders.
The provision of best prospects list offers firsthand information to potential traders about available and certified markets and distributor information which could facilitate ease of trading.
Answer:
Blue Spruce report as its December 31 inventory is $285,000
Explanation:
Correct inventory
= 229,500 + goods purchased FOB shipping point 30,000 + goods sold FOB destination 25,500
= 229,500 + 30,000 + 25,500
= 285,000
