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Serga [27]
3 years ago
15

When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign proj

ect, inflation ____ included explicitly in the cash flow analysis, and debt payments by the subsidiary ____ included explicitly in the cash flow analysis.
Business
1 answer:
mrs_skeptik [129]3 years ago
4 0

Answer:

inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.

Explanation:

A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.

The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.

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Which is not true of limits? Select one: a. Are the point where you should stop the negotiation b. Are also called resistance po
Rama09 [41]

Answer:

The correct answer is letter "B": They should be ignored in a bidding war.

Explanation:

Negotiations are vital in every aspect. They allow individuals to deal with situations in which parties need from each other but either of them is willing to take the first step to come to an agreement. Negotiations can also be useful out of problematic situations when parties voluntarily want to make a pact but the initial terms are unclear.

Placing limits for negotiations is important as well. Limits will prevent parties from giving to much of themselves or avoiding the other party to take advantage of a given situation. Thus, in front of war, limits must be placed in a negotiation.

7 0
3 years ago
If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th
Sloan [31]

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will  rise, causing households and businesses to hold less money.

Option A

<u>Explanation: </u>

Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.

If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.

7 0
3 years ago
When actual revenue ______ what the revenue should have been, the variance is labeled favorable.
xeze [42]

When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.

Hope that helps!

6 0
2 years ago
Read 2 more answers
1. A firm in a competitive market has the following cost structure: Output Total Costs 0 $10 1 $12 2 $15 3 $19 4 $24 5 $30 6 $37
iogann1982 [59]

Answer:

b. 6 units

Explanation:

Output     Revenue  Costs = Profit  ( Revenue - Costs)

   0                   0         10 =  -10

   1                    8         12 =  -4

   2                   16        15 =   1

   3                   24        19 =   5

   4                   32        24 =   8

   5                   40        30 =   10

   6                   48         37 =   11

   7                   56        46 =   10

   8                   64        55 =   9

   9                   72        65 =    7  

Note: The revenue is calculated by multiplying output by the market price of $8.

The firm should produce 6 units to maximize their profit which is $11.

3 0
3 years ago
In a compensatory stock option plan for which the grant and exercise dates are different, the stock options outstanding account
NeTakaya

Answer:

The correct answer is D

Explanation:

The compensatory stock option is the option which is given or provided to the employee, providing the ability for purchasing the certain number of the shares of the company at the price which is the pre- determined one along with the pre- determined range of the date.

And the stock options which have the outstanding account that should be decreased or reduced at the date of exercise.

3 0
3 years ago
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