Answer:
By applying a process of natural hedging, with integrated operational management, logistics and infrastructural investments, Trafigura can diversify its activities and investments so that risks are flattened out. For instance, its investments in storage and shipping capabilities ensure that if the demand for storage is low, the demand for shipping will increase and vice versa.
Furthermore, when Trafigura is not trading actively in the physical commodity, it can use its asset management, logistics, and distribution capabilities and globalized network of subsidiaries and activities to offset the low revenue from trading. These diversified investments and assets, therefore, enhance and complement its various activities so that its risk profile is constantly being managed in a balanced manner without incurring so much risk costs.
Explanation:
Trafigura Group Pte. Ltd. according to sources, is one of the world's "largest independent and integrated commodity traders and a logistics, warehousing, asset management, mining, and energy distribution conglomerate." As a multinational commodity trading company founded in 1993, Trafigura trades in base metals and energy, and is registered and headquartered in Singapore.
The price of one country's currency expressed<span> in terms of </span>another country's currency<span> is: A. by </span>definition<span>, </span>one<span> unit of </span>currency<span>. ... A. exchange rate between the U.S. dollar and </span>another currency<span>. B. exchange rate between two </span>currencies<span>, neither of which is generally the U.S. dollar.21</span>
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
Answer:
- <u><em>$31,858.57</em></u>
Explanation:
1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.
The formula is:
![PV=C[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Where:
- PV is the present value of the annuity
- C is the constant pay,emt: $1,500
- r is the rate of return: 8%/12 = 0.08/12 =
- t is the number of periods: 15 years × 12 moths/year = 180
Substitute and compute:
![PV=\$ 1,500[\dfrac{1}{(0.08/12)}-\dfrac{1}{(0.08/12)(1+0.08/12)^{180}}]](https://tex.z-dn.net/?f=PV%3D%5C%24%201%2C500%5B%5Cdfrac%7B1%7D%7B%280.08%2F12%29%7D-%5Cdfrac%7B1%7D%7B%280.08%2F12%29%281%2B0.08%2F12%29%5E%7B180%7D%7D%5D)
<u>2. Discount to the present year.</u>
You calculate the value of the annuity 20 years from now.
Then, you must discount that value at the same 8% rate to have the price today.
Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).
Answer:
persuasive
Explanation:
Persuasive advertising refers to a marketing strategy that seeks to persuade customers, especially new customers, to purchase their products or services. Persuasive advertising is extremely important when there are a lot of competitors, e.g. there are dozens of different laundry detergents and Tide must convince customers to keep buying it.
