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Ne4ueva [31]
3 years ago
8

Petrus Company has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,000,

000 Australian dollars (A$) in the first year and 2,000,000 Australian dollars in the second. Petrus would have to invest $1,500,000 in the project. Petrus has determined that the cost of capital for similar projects is 14%. What is the net present value of this project if the spot rate of the Australian dollar for the two years is forecasted to be $.55 and $.60, respectively
Business
1 answer:
aliya0001 [1]3 years ago
8 0

Answer:

$(94,179)

Explanation:

Particulars        Year 0               Year 1            Year 2

Cash flows     ($1,500,000)  A$1,000,000   A$2,000,000

DCF 14%              1                    0.8772         0.7695

Present Values 1500,000      A$877,200      A$ 1,538,935

Conversion           1                    0.55                      0.60

P V in US$        (1,500,000)     482,460              923,361

Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)

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Anastaziya [24]

Answer:

Effect on income= $2,000 decrease

Explanation:

Giving the following information:

Selling price= $10 per unit.

Variable costs are $4 per unit

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We need to calculate the effect in the income of moving to a larger facility.

Effect on income= total contribution margin increase - increase in fixed costs

Effect on income= 1,000*(10 - 4) - 8,000

Effect on income= $2,000 decrease

6 0
3 years ago
Once the court has decided a case and the appeals process is over, there can be no new lawsuit on the same subject between the s
sukhopar [10]
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3 years ago
When a company's revenue is greater than its expenses, it means that?
ivolga24 [154]
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7 0
3 years ago
In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the s
disa [49]

Answer:

a. decreased by 4%

Explanation:

In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produce 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronic increased by

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8 0
3 years ago
A well-known brand management company is emphasizing creating a sense of community within their organization via team-based proj
Juli2301 [7.4K]

Answer:

3) Social needs

Explanation:

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Hope that helps.

7 0
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