Answer:
The answer is 0.01082
Explanation:
The formula for forward exchange rate is:
F = S x 1+rd/1+rf
where F is the forward exchange rate
S is the spot exchange rate(0.010798)
rd is the foreign currency interest rate(3% or 0.03)
rf is the domestic interest rate(3.75% or 0.0375
Month is 3 months(90days) and total number of days in a year is 360days.
Find find the attached file for calculation
Explanation:
The formula to compute the current ratio is shown below:
Current ratio = Total Current assets ÷ total current liabilities
where,
Total current assets = $4,315 million
And, the total current liabilities is $2,453 million
So, the current ratio is
= $4,315 million ÷ $2,453 million
= 1.76 times
Since the current ratio is greater than the 1.76 times that reflects that company have a liquidity position and it is able to pay its short term obligations
Answer:
First Airplane Payback Period = 3 years
Second Airplane Payback Period = 4 years
Since, First Airplane is going to repay the Original Cost of the Airplane in shorter amount of time as compared to Second Airplane. Therefore, if the the decision is based on the payback approach the North should accept First Airplane.
Explanation:
NORTH AIRLINE COMPANY
<u>First Airplane:</u>
Payback Period = Original Cost of the Asset / Annual Cash Inflow
Payback Period = $12,000,000 / $4,000,000
Payback Period = 3 years
<u>Second Airplane:</u>
Payback Period = Original Cost of the Asset / Annual Cash Inflow
Payback Period = $24,000,000 / $6,000,000
Payback Period = 4 years
Answer:
The answer is 14.4%
Explanation:
Calculations as follows:
Total returns 1600*12*5=96,000
Plus the capital investment of 100,000
Total amount 100,000+96,000=196,000
196,000=100,000(1+r/100)∧5
196,000/100,000=(1+r/100)∧5
5√1.96=1+ r/100
5√1.96 -1= r/100
1.1440-1 = r/100
0.144= r/100
r = 14.4%
Answer:
c. $66,666.67.
Explanation:
Provided that
Wrexington job paying a salary for $50,000 per year
Charlieville job paying a salary for $40,000 per year
The CPI in Wrexington is 150
The CPI in Charlieville is 90
So, by considering the above information, the Charlieville salary in Wrexington dollars is
= Charlieville job paying a salary × CPI in Wrexington ÷ CPI in Charlieville
= $40,000 × 150 ÷ 90
= $66,666.67
