3 years ago

A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:

Business

1 answer:

Maurinko [17]3 years ago

8 0

Answer:

a. appreciation of the U.S. dollar and depreciation of the foreign currency.

Explanation:

When the supply of us dollars fall, demand for US dollars would be greeter than the supply, the value of the US dollar would rise.

I hope my answer helps you

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Here are the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3 A −$ 34,400 +$ 13,700 +$ 13,700 +$ 13,700 B − 3

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Answer:

7.89%

Explanation:

We can find the IRR of Project A and Project B is 9% and 8% respectively

(please see the calculation in excel in attachment)

So if the interest rate below 8% then Project A is more profitable than project B.

You can find NPV of each project follow the decrease in interest rate in the excel attached.

Download xlsx

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Please check the attached image for the table explaining how the answer was gotten.

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I hope this helps :)

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