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shusha [124]
2 years ago
7

What is the maximum amount you would pay for an asset that generates an income of $ 250,000 at the end of each of five years if

the opportunity cost of using funds is 8 percent?
Business
1 answer:
Galina-37 [17]2 years ago
3 0

Answer:

170,146

Explanation:

$250,000 / (1.08)5= 170,146

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Likurg_2 [28]
75 I think not 100% but that makes Sense
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2 years ago
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You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF
Anna [14]

Answer:

SF7.37

Explanation:

PV of cash flow is calculated using the formula

1-(1+r)^-n/r=1-(1-0.15)^5/0.15=1-(0.75)^5/0.15=1-0.237/0.15=5.085

So pv=5.085×4.4=SF

20.3385million

Using interest parity

1+ic/1+ib =Fo/So

Counter country is US while home country is in

swiss

1+0.05/1.04=fo/1.09

Fo=1.09×1.05/1.04=1.1

So expected PV=20.3385×1.1=SF22.37235million

Profit=23.37235-15=SF7.37

6 0
2 years ago
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Henry Co. manufactures DVD players. At the end of Year 1, Henry's management believes the growing popularity of streaming video
zysi [14]

Answer:

Not impaired because the fair value of the equipment is greater than the carrying value of the asset by $120,000.

Explanation:

Impairment will happen if carrying amount is greater than the fair value of the assets, here the carrying value of the assets is 1,480,000, which is lessor than the fair value of the assets 1,600,000 by 120,000. Hence impairment will not happen so 1st option is correct.

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GNP equals GDP7)A)plus net receipts of factor income from the rest of the world.B)minus receipts of factor income from the rest
xeze [42]

Answer:

The answer is A. Plus net receipts of factor income from the rest of the world

Explanation:

Gross National Product (GNP) measures the total output produced by a citizen of a country regardless of whether the production occurs domestically or overseas in a given period of time. while Gross Domestic Product(GDP) is the market value of all final goods and services produced within the economy in a given period of time.

For example, a citizen of United States that produced outside the country will not count for GDP but will count in the GNP.

It is only goods produced within a country that counts for GDP excluding the ones produced outside the country.

But for GNP, it includes GDP and the one outside produced by its citizens

3 0
2 years ago
Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP deflator P for Country X and P*
Kaylis [27]

Answer:

Explanation:

a)  

Year             percentage increase

2011               21.21162

2012       14.35054

2013       20.62696

b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to;   Decline

c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X  

d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.

3 0
2 years ago
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