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andreyandreev [35.5K]
3 years ago
8

Jaguar has full manufacturing costs of their Sminustype sedan of pound​22,803. They sell the Sminustype in the UK with a​ 20% ma

rgin for a price of pound​27,363. Today these cars are available in the US for​ $55,000 which is the UK price multiplied by the current exchange rate of ​$2.01/pound. Jaguar has committed to keeping the US price at​ $55,000 for the next six months. If the UK pound appreciates against the USD to an exchange rate of ​$2.15/pound​, and Jaguar has not hedged against currency​ changes, what is the amount the company will receive in pounds at the new exchange​ rate?
Business
2 answers:
Anika [276]3 years ago
3 0

Answer:

Explanation:

Old Price         27363

Exchange Rate 2.01

USD Value         55000

the company has committed to sale at $55000 existing price for next six months.

No currency hedge contract has been made by jaguar, in such case due to appreciation of pound the value of dollar will decrease but due to commitment by jaguar not to fluctuate the cost the total amount receivable in pounds will decrease as compared to 6 months before

USD Value         55000

Exchange Rate  2.15

Price in Pounds      25581

Decrease in pounds = 27363-25581 = 1782 loss

murzikaleks [220]3 years ago
3 0

Answer:

25581.40 Pounds

Explanation:

in this problem we firstly evaluate if the $55000 does include the margin of 20% for the old exchange rate which is $2.01/ pound which we will say ($55000)/($2.01/ pound) = 27363 Pounds therefore it is already adjusted to margin percentage then when we now calculate the new amount the company will receive with the new exchange rate taking place we will calculate also by dividing the dollar price of the jaguar by the new exchange rate of the dollar to the pound in order to find out the new pound price of the jaguar model. As we are told in this statement that for the next six months the jaguar will remain $55000 so we know that its dollar price will not change as jaguar has not hedged against currency changes therefore the UK price will be $55000/($2.15/pound) = 25581.40 Pounds as we see in this problem that the pound has really appreciated to the dollar because the UK price of the jaguar has dropped from 27363 Pounds to 25581.40 pounds.

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3 years ago
How should employers do to actively prevent workplace hazards?
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Hey there!

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KIM [24]

Answer:

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Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

<em>Only the values added are summed, the cost of the inputs or intermediate goods are not included</em>

<em>In this question, the final value of $2200 represents the amount by which the GDP has increased in the period. This also can be verified using the value-added approach as follows</em>

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Explanation:

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The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.

The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.

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