Answer:
$1,238.85
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 7%
NPER = 8 years
PMT = $1,000 × 11% = $110
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $1,238.85
Answer:
e. $638
Explanation:
payment to be made as per forward contract (IN $)
= 39960/ 1.682
= $23757.43
now the actual rate after 90 days is 1.638
payment at 1.638 rate = 39960/ 1.638
= $24395.6
loss by hedging = $24395.6 - $23757.43
= $638.17
Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.
Answer:
Cost of the VAN <em>$53.298</em>
Explanation:
We have to enter the van as the cost for a cash purchase and all other neccesary cost to get the van ready for use and in company's possesion.
The financing cost (interest) should be excluded as are not part of the cost the company can chose to take them or not.
list x reduction = invoice
invoice less discount = cash price
60,000 x (1 - 0.13) x (1 - 0.01) = 51.678
to this, we add up the sales tax and the extra cost for the device
51,678 + 860 + 760 = <em>53.298</em>
<u>Answer:</u> This approach is called attrition.
<u>Explanation:</u>
Attrition is the process of reducing the workforce of the company due to various reasons. Here South Carolina has lot of budget constraints which forces the state to reduce the in take of new employees. This approach can also be called as hiring freeze so that the payroll can be reduced instead of doing layoffs.
The strength of the state is reduced in order to reduce the expenses and money pay outs. When there is a deficiency in the budgets actions have to be taken accordingly to minimize the effects.
