Answer:
The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.
We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros
E.G Buy a $1000 from the market for £555(10,000*1/1.8)
After that we can by 28.5(1000/35) ounces of gold from that and sell the gold for £571(20*28.5). This way we make a profit of £16 (571-555) without taking any risk.
Explanation:
Answer:
D. $ 3 million or more
Explanation:
Since the minimum materiality amount on individual basis is $3 million for client's income statement.
Therefore, whether it is on individually or collectively identified that there is misstatement of at least $3 Million the auditor will consider it material.
They will notify appropriate authorities regarding the misstatement.
Answer:
Value Added Network
Explanation:
Value Added Network -
It is the service , which is provided by some private firm , so that the company have a secure way to share the data , is referred to as value added network , VAN .
It is the most common method for the movement of the electronic data interchange ( EDI ) , in between two firm or companies .
Hence, from the given information of the question,
The correct term is Value Added Network VAN.
Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.