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dybincka [34]
3 years ago
7

You are considering a project in Norway with an initial cost of NKr135,000. The project is expected to return a one-time payment

of NKr200,000 at the end of Year 5. The risk-free rate of return is 2.6 percent in the U.S. and 3.1 percent in Norway. The inflation rate is 1.6 percent in the U.S. and 2.3 percent in Norway. Currently, the exchange rate is $1= NKr7.0305. Approximately how much will the payment at the end of 5 Years be worth in U.S. dollars?
a. $27,747
b. $28,108
c. $27,472
d. $28,311
e. $27,006
Business
1 answer:
MA_775_DIABLO [31]3 years ago
8 0

Answer:

The payment will be approximately at the end of 5 Years of $27,764.28, so option a is the correct one

Explanation:

In order to calcualte The exchange rate at the end of five years is we have to use the following formula:

= 7.0305 * {(1+ interest rate in Norway)/(Interest rate in US)}^5

= 7.0305 * [(1.031)/(1.026)]^5

= Nkr 7.2035 / $

= $1/7.2035 / Nkr

= $0.1388 / Nkr

Henche, The payment to be recieved at the end of 5 years will be NKr 200,000, therefore the value of the payment in dollars is = $27,764.28

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Answer:

create a relevant agenda for every meeting and stay on point by re-directing non-work related topics back to agenda items.

Explanation:

Fin is the manager, he might be new at the job but it is his responsibility to direct and control his subordinates. Managing isn't easy and maybe some of his staff will not like him directing and controlling what is said during the meetings, but it is his job. If he is not fit to do it, then he should have chosen another job or another career.

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7 0
3 years ago
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
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Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

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C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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rate 0.004 (4.8% divide by 12 month)

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time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

(1+0.004)^{-n}= 0.20

now we use logarithmic properties to solve for n:

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this will be a value in months so we divide by 12 to get it annually

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we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0
3 years ago
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea
Montano1993 [528]

Answer:

$880.31

Explanation:

For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

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The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $880.31

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