Answer:
The amount that will be received today is $2518857.85
Explanation:
To calculate the amount that will be received today, we need to discount the amount that will be received three years from now for a period of 3 years using the given discount rate. As there is only a single cash flow, we will use the formula for present value of principal.
The present value of principal is,
Present value = Cash flow / (1+d)^t
Where,
- Cash flow is the amount for which we have to found the present value
- d is the discount rate
- t is the time in terms of number of periods
- Here the t is in years and the number of periods is 3 years
Present value = 3000000 / (1+0.06)^3
Present value = 2518857.849 rounded off to $2518857.85
Answer:
this question is not true/false
the answer is: foreign direct investment
Explanation:
Foreign direct investment (FDI) takes place when a domestic company or individual invests directly in new facilities to produce goods or services in a foreign country. Or as the US Department of Commerce clearly states, when a US citizen or organization acquires at least 10% of a foreign business.
FDI is a game played on both sides. For example, the US received $296.4 billions during 2018 as FDI from foreign investors.
Answer:
b. buildings and machines used in the production process
Explanation:
In economics, capital is one of the four factors of production. It refers to the assets used in the production of other goods and services. These assets include buildings, plants, and machinery used in manufacturing, and are not part of the output. Capital includes financial assets needed in facilitating the production process.
In finance and accounting, capital will refer to money or cash equivalents. In economics, capital is not limited to finances only. It includes all the assets used to create wealth. Minerals, equipment, and intangible assets such as copyrights and patents are considered as capital.
Answer:
a. $4,322.74
b. Yes
Explanation:
a. The computation of December futures is shown below:-
December futures = June futures × (1 + 1.9%)
= $1490.60 × (1 + 1.9%)
= $1490.60 × 2.9
%
= $4,322.74
Since the current interest rate is 3.8% and the contract is expired in 6 months so we half the interest rate i.e 1.9%
b. Yes, there is an arbitration opportunity here due to the difference between the future price of December. The real futures price for December is $1,500 and the potential price for December's parity relationship is $4,322.74
