Answer:
Year Cashflow [email protected]% PV
$ $
0 (750,000) 1 (750,000)
1 350,000 0.9259 324,065
2 325,000 0.8573 278,623
3 250,000 0.7938 198.450
4 180,000 0.7350 132,300
NPV 184,438
The correct answer is D. The difference in answers is due to rounding error.
Explanation:
Net present value is the diffrence between initial outlay and present value of inflow. We need to discount the cash inflows for year 1 to year 4 at 8% and then calculate the present value of cash inflows by multiplying the cash inflows by the discount factors. Finally, we will calculate NPV by deducting the initial outlay from the present value of cash inflows.
Answer and Explanation:
The computation of the missing amount is as follows:
As we know that
The total manufacturing cost = Direct Materials Used + Direct Labor Used + Factory Overhead
So,
(1)
= $42,700 + $64,200 + $52500
= $159,400
(2)
= $298,000 - $78,100 - $144,000
= $75,900
(3)
= $314,000 - $57,400 - $113,000
= $143,600
Answer and Explanation:
The computation of the amount considered as US sourced income is as follows;
= $5,000 × 10 days ÷ 20 days
= $2,500
The following are the requirement related to the fully exempt US source income is as follows:
1. The service should be perfomed by an United States NRA for 90 days or less
2. The compensation should not be more than $3,000
3. The service should be performed on behalf of
a. NRA, foreign corporation or partnership who not engaged in US trade
b. The office should be maintained in US by an individual who should be the citizen of US
So the same is not allowed for exemption
Answer:
The correct answer is Domestic Stage/First Stage.
Explanation:
In the first stage of the international development of a company, also known as the national stage, the orientation and operation of an organization is based on the local area, its market capacity is limited to the country of origin. However, its managers seek to transcend borders to publicize their products / services globally, initially intervening in some international market to expand their production volume and achieve economies of scale.
Answer:
The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.
Explanation:
optimal hedge ratio
= coefficient of correlation*(standard deviation of quarterly changes in the prices of a commodity/standard deviation of quarterly changes in a futures price on the commodity)
= 0..8*(0.65/0.81)
= 0.642
Therefore, The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.
