Homework Answers
Company's before tax MARR based on Currency of Country X is 20%
Dollar is projected to devaluate 2.2% annually relative to the currency of Country X
.
U.S. MARR for the company for economic analysis = 0.20 + 0.022 + (0.20)*(0.022)
= 0.20 + 0.022 + 0.0044
= 0.2264
= 22.64%.....(Answer)
Add Answer to:
An automobile manufacturing company in a foriegn Country X is considering the construction and operation of...
An automobile manufacturing company in a foriegn Country X is considering the construction and operation of...
An automobile manufacturing company in a foriegn Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR - 20% per year on a before-tax basis (This is a market rate relative to their currency in Country X.). It is estimated that the U.S. dollar will become weaker relative to the their curency during the next 10 years. Specifically, the dollar is estimated to be devalued at an average...
A construction company is considering whether to lease or buy equipment for its new 4-year projec...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,850 and a cash inflow the following year of $3,750. IMC estimates that its risk-adjusted cost of capital is 16%. Currently, 1 U.S. dollar will buy 7.0 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 2%, while...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,000 and a cash inflow the following year of $3,850. IMC estimates that its risk-adjusted cost of capital is 20%. Currently, 1 U.S. dollar will buy 6.7 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 6%, while...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,900 and a cash inflow the following year of $3,700. IMC estimates that its risk-adjusted cost of capital is 18%. Currently, 1 U.S. dollar will buy 6.0 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 2%, while...
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a...
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2000 and a cash inflow the following year of $2400. Sandrine estimates that its risk-adjusted cost of capital is 13%. Currently, 1 U.S. dollar will buy 0.71 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 7.75%, while similar securities in Switzerland...
Duncan Street Company (DSC), a British company, is considering establishing an operation in the United States to assemble and distribute smart speakers. The initial investment is estimated to be 25,00...
Duncan Street Company (DSC), a British company, is considering establishing an operation in the United States to assemble and distribute smart speakers. The initial investment is estimated to be 25,000,000 British pounds (GBP), which is equivalent to 30,000,000 U.S. dollars (USD) at the current exchange rate. Given the current corporate income tax rate in the United States, DSC estimates that total after-tax annual cash flow in each of the three years of the investment’s life would be US$10,000,000, US$12,000,000, and...
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a...
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2000 and a cash inflow the following year of $2400. Sandrine estimates that its risk-adjusted cost of capital is 13%. Currently, 1 U.S. dollar will buy 0.83 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 6%, while similar securities in Switzerland...
Several factors affect the exchange rate of a currency with another currency. Which of the following...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016....
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales KQ 190,000 Inventory (bought on 3/1/17) 95,000 Equipment (bought on 1/1/16) 58,000 Rent expense 12,000 Dividends (declared on 10/1/17) 22,000 Notes receivable (to be collected in 2020) 35,000 Accumulated depreciation—equipment 17,400 Salary payable 4,800 Depreciation expense 5,800 The following U.S.$ per KQ exchange rates...
An automobile manufacturing company in a foriegn Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR - 20% per year on a before-tax basis (This is a market rate relative to their currency in Country X.). It is estimated that the U.S. dollar will become weaker relative to the their curency during the next 10 years. Specifically, the dollar is estimated to be devalued at an average...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
Quantitative Problem: International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,000 and a cash inflow the following year of $3,850. IMC estimates that its risk-adjusted cost of capital is 20%. Currently, 1 U.S. dollar will buy 6.7 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 6%, while...
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2000 and a cash inflow the following year of $2400. Sandrine estimates that its risk-adjusted cost of capital is 13%. Currently, 1 U.S. dollar will buy 0.71 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 7.75%, while similar securities in Switzerland...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
Most questions answered within 3 hours.
-
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 33 minutes ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 37 minutes ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 1 hour ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 1 hour ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 1 hour ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 1 hour ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 1 hour ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 1 hour ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 1 hour ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 1 hour ago -
Which amino acid has a basic R group?
A) tyrosine
B) Isoleucine
C) Glutamic Acid
D)...
asked 1 hour ago -
Is there the need for the government to have hackers. Please
share your thoughts.
asked 2 hours ago