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 0.73 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 6.75%, while similar securities in Switzerland are yielding 3%.
If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? Round your answers to two decimal places.
NPV = $
Rate of return = %
What is the expected forward exchange rate 1 year from now? Round your answer to two decimal places.
SF per U.S. $
If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round your answers to two decimal places.
NPV = Swiss Francs
Rate of return = %
In: Finance
Write a one page by answering the following question Most importantly, be sure to use evidence, reason, argument, and/or examples to support your view
Corporation B is a publicly traded Fortune 500 company worth $50 billion. Corporation B has factories in the United States, in addition to Mexico and China. While Corporation B has a strong code of ethics, a recent internal audit found that Corporation B unjustly profited off labor in Mexico and China that was conducted under illegal conditions. This labor contributed substantially to the company’s 2012 profit of $6 billion, although the exact amount of profit it contributed is unknown. Corporation B also made part of its $6 billion profit from its factories in the United States, which met all state and federal labor standards. A government accountability office discovers the illegal labor conditions in China and Mexico. The result, is that Corporation B’s 2012 profit of $6 billion was made through just and unjust means. How should the government accountability office redress the injustice of profiting off labor performed under illegal conditions? (Make reference to the articles “Justice as Fairness”, and also, “Distributive Justice,”
In: Psychology
Pick a common household product. If this product were brand new and the basis for your startup, explain how you would test the product with customers.
What process would you use and what questions would you ask?
2 pages in length.
In: Economics
Jujube Tech is a startup that successfully sold a popular portable phone battery and has accumulated a large of amount of cash, which is sufficient for the firm's investment for the next 5 years, according to estimates. Are Jujube Tech's investment decisions affected by the interest rate this year?
In: Economics
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton.
On January 1, 2017, Hamilton sold $1,500,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 8 percent payable every December 31. Cairns acquired 45 percent of these bonds at 96 percent of face value on January 1, 2019. Both companies utilize the straight-line method of amortization.
Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
December 31, 2019
December 31, 2020
December 31, 2021
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. The
company buys equity securities as noncurrent investments. None of
Ornamental’s investments are large enough to exert significant
influence on the investee. Ornamental’s fiscal year ends on
December 31. No investments were held by Ornamental on December 31,
2020.
| Mar. | 31 | Acquired Distribution Transformers Corporation common stock for $450,000. | ||
| Sep. | 1 | Acquired $975,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $18,000 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $480,000. | ||
| Nov. | 1 | Purchased $1,450,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 920,000 | |
| M&D Corporation common stock | $ | 1,515,000 | |
In: Accounting
“Minister of labour, Thulas Nxesi, has gazetted South Africa’s
new minimum wage which will take effect from 1 March 2020.
The gazette states that the new national minimum wage is R20.76 –
an increase of 3.8%”.
Adapted from:
https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-has-just-announced-for-south-africa/
Accessed: 21/02/2020
Provide a discussion on the welfare effect of the above, that
illustrates the case for when the above results in unemployment in
the market for domestic workers as well as a case for when the
above has no effect on the market for domestic workers. Use a
diagram to support your discussion.
N.B.N.B Please include diagram
In: Economics
1 What is genetic drift?
2 In what way can a genetic bottleneck lead to genetic drift in population?
3 In what way can founder effect lead to genetic drift in a population?
In: Biology
1, Bitcoin and blockchain are the same thing.
true
false
2, Operational efficiency and operational effectiveness are the same thing.
true
false
3, Bill Gates was the sole founder of Microsoft.
true
false
In: Computer Science
Oil & Gas Industry
1.Given the Larger Environment and Industry Structure, Your Prediction of what the Industry will look like in 10 years from today.
------ Strategic Management Course , MBA
In: Economics