Answer:
$10,275.03
Explanation:
Years 0 1 2 3 4
Cash flow -15000 -58000 45000 45000 45000
Successful chance result (62%) -9300 -35960 27900 27900 27900
Considered cash flow -15000 -35960 27900 27900 27900
Discount factor (14%) 1 0.877 0.769 0.675 0.592
Present value -15000 (31,543.86) 21,468.14 18,831.71 16,519.04
Net present value = -$15000 - $31,543.86 + 21,468.14 + 18,831.71 + 16,519.04
Net present value = $10,275.03
Other things the same, if the exchange rate changes from 30 thai bhat per dollar to 25 thai bhat per dollar, then the dollar has been depreciated due to which less quantity could be purchased.
This is because of currency depreciation.
Currency depreciation is the fall in the value of a currency in terms of its exchange rate versus other currencies. Currency depreciation can occur due to many factors such as interest rate differentials, political instability, economic fundamentals, or risk aversion among investors.
Easy monetary policy and high inflation are two leading causes of currency depreciation. When interest rates are low, hundreds of billions of dollars chase the highest yield.
To know more about currency depreciation here:
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Answer:
a. $270,000
Explanation:
The computation of the total amount of working capital is shown below:
As we know that
working capital = Current asset - current liabilities
where,
Current asset = Cash + prepaid insurance + account receivable + inventory
= $130,000 + $60,000 + $100,000 + $140,000
= $430,000
And, the current liabilities is
= Account payable + salaries payable
= $140,000 + $20,000
= $160,000
So the working capital is
= $430,000 - $160,000
= $270,000
Renting is is leasing the home monthly for a certain amount & buying is paying in full with mortgage to own the home
