The World Bank primarily
provides for the financing of economic development projects throughout the
world.
<span>World Bank is an
international financial organization that allows countries around the world to
have a loan for capital programs of a certain countries especially programs
aiming to end poverty.</span>
Answer:
t = 3.801784017 years rounded off to 3.80 years
Explanation:
We need to calculate the time it takes for the initial investment of $1.5 million to grow and have a future value of $3 million. The formula to calculate the future value of a sum of money is,
FV = I * (1+r)^t
Where,
- FV is the future value
- I is the initial investment amount
- r is the rate of return
- t is the time in years
3 = 1.5 * (1+0.2)^t
3 / 1.5 = 1.2^t
2 = 1.2^t
log (2) / log (1.2) = t
t = 3.801784017 years rounded off to 3.80 years
Answer:
d. directly investing in a foreign country
Explanation:
A subsidiary is a firm that is wholly or partially owned by another bigger corporation. A foreign subsidiary is a business owned by another company whose headquarters are in a different country. The foreign subsidiary is formed and managed as per the laws of the country in which it operates.
A corporation establishing a foreign subsidiary will be directly investing in another country. Foreign direct investment is an investment performed by an entity in one country into business interests located in another country. Jose's company will acquire a business, and its assets be located in a foreign country.
Answer:
ending cash balance 62,000
Explanation:
<u>operating activities:</u>
services on cash 8,000
collected from AR 51,000
paid to supplies (22,000)
rent paid (6,500)
supplies paid (1,200)
cash generated from operating: 29,300
<u />
<u>financing activities:</u>
issuance of stock 30,000
cash dividends paid (4,000)
cash generated from financing: 26,000
cash generated during the year: 55,300
beginning cash balance <u> 6, 700 </u>
ending cash balance 62,000
Answer:
MIRR is higher than the discount rate, so this project should be profitable and should be accepted.
Explanation:
using the discounting approach to the MIRR:
NPV = 0 = [(-$236,000 - $25,000) / (1 + MIRR)³] + [$137,400 / (1 + MIRR)] + [$189,300 / (1 + MIRR)²]
Using a financial calculator, MIRR = 17.85%
MIRR (17.85%) is higher than the discount rate (14%), so this project should be profitable and should be accepted.
The modified internal rate of return assumes that the initial investment is financed at the interest rate, while the cash generated by the project is reinvested at the firm's WACC.
