Excel Online Structured Activity: Foreign capital budgeting
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 12%. Currently, 1 U.S. dollar will buy 0.82 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 6.75%, while similar securities in Switzerland are yielding 3.5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.
Open spreadsheet
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
Need an outline for my healthcare systems course
I want a universal Healthcare system in which everyone is given health insurance in the United states in which the government insures everyone.
Outline topic is Design a universal health care system for the United State system
Here are the elements needed in the essay: Model the system after that of another nation, if you'd like, or design one that is completely original. Make sure to take into consideration that the values and needs of the American people in designing your system. Also, include the following elements in your design:
· The role of federal, state, and local governments
· The role of insurance companies
· The role of employers
· The role of providers
· The role of consumers
· How health care would be paid for
· The advantage of your system over the existing one
· The biggest criticisms your opponents would have of your system
· How you would answer these criticisms
· Make sure to discuss how you will improve access, decrease cost, and increase quality
In: Nursing
1.How realistic do you think it is to create a world standard for toys with respect to their safety and use by children?
2.Should we ban products from a country that does not follow standards similar to what the U.S. Consumer Product Safety Commission suggests for the United States? Is the CPSC overprotective? Should each country have its own guidelines? Why or why not?
3.If there are health risks associated with lead poisoning, what about related areas such as lead in drinking water (e.g., the issue that came to the forefront in the 2016 U.S. presidential campaign regarding water supply in Flint, Michigan)?
4.Is lead in toys a financial, or cost, issue? Why have we not seen the toy industry monitor and do something about the lead problem, even though we have known about it for more than 30 years?
Refer http://www.chegg.com/homework-help/questions-and-answers/toys-children-made-numerous-countries-exported-buyers-throughout-world-countries-united-st-q26479059
In: Economics
1.How realistic do you think it is to create a world standard for toys with respect to their safety and use by children? 2.Should we ban products from a country that does not follow standards similar to what the U.S. Consumer Product Safety Commission suggests for the United States? Is the CPSC overprotective? Should each country have its own guidelines? Why or why not? 3.If there are health risks associated with lead poisoning, what about related areas such as lead in drinking water (e.g., the issue that came to the forefront in the 2016 U.S. presidential campaign regarding water supply in Flint, Michigan)? 4.Is lead in toys a financial, or cost, issue? Why have we not seen the toy industry monitor and do something about the lead problem, even though we have known about it for more than 30 years? Refer http://www.chegg.com/homework-help/questions-and-answers/toys-children-made-numerous-countries-exported-buyers-throughout-world-countries-united-st-q26479059
In: Economics
Kiwi PLC.. Manufacturer of shoe polish is the brand name of a
shoe polish, first launched and sold in Australia in 1906
and as of 2017 is sold in almost 180 countries. Previously owned by
the Sara Lee
Corporation since 1984, it was sold in 2011 to S. C. Johnson. It is
the dominant shoe
polish in some countries, including the United Kingdom and the
United States, where
it has about two-thirds of the market.
The polish was developed in Australia by William Ramsay who named
it Kiwi after the
flightless bird endemic to New Zealand, the home country of his
wife, Annie Elizabeth
Meek Ramsay. Its success in Australia expanded overseas when it was
adopted by
both the British and American armies in the two World Wars.
a) Explain any five attributes of a strong brand such as Kiwi. [
5marks]
b) How might the marketing of Kiwi differ from the marketing of a
service such as
a banking product? [ 10marks]
c) Discuss five advantages of branding to the manufacturers of
Kiwi. [ 5marks]
[TOTAL: 20MARKS
In: Operations Management
The purpose of the Central America Free Trade Agreement is to
Multiple Choice
lower trade barriers between the United States and the Central American Common Market countries.
eliminate trade barriers between the CARICOM and Central American Common Market countries.
reduce of trade barriers between Caribbean Single Market and Economy nations and Central American Common Market countries.
introduce a common currency for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
reduce tariffs and quotas between Costa Rica, Dominican Republic, and Nicaragua.
Which country has been granted three bailout efforts by the EU in an attempt to prevent a sovereign debt crisis?
Multiple Choice
Greece
France
Great Britain
Belgium
Portugal
Canada and the United States agree to remove all barriers to the trade of goods between them. However, the countries agree that each would be allowed to determine its own trade policies with regard to nonmembers. The economic integration between these countries is called a(n)
Multiple Choice
free trade area.
customs union.
common market.
economic union.
political union.
What is one main impediment to regional economic integration?
Multiple Choice
identical political ideologies
reduced immigration
loss of national sovereignty
lack of popular support
difficult international policies
Brett Thiesen wants to make a political case for regional economic integration to his electorate. Which valid statement can he make in this regard?
Multiple Choice
Linking neighboring economies increases the potential for violent conflict.
Free trade stimulates economic growth, which creates dynamic gains from trade.
Making neighboring economies increasingly dependent on each other fails to create incentives for political cooperation.
Countries can enhance their political weight in the world by grouping their economies.
Those seeking a united Europe have always had a desire to make another war in Europe imminent.
In: Operations Management
This assignment requires that you write a policy memo.
Topic Marijuana
Review the following criteria for the policy memo:
Here are possible topics (you can choose another, but I need to approve of it first)
Student Learning Outcomes:
7) Identify the rights and responsibilities of citizens.
8) Analyze issues & policies in U.S. politics
In: Nursing
Alliston spa, a California company, has been expanding in the Northeast. It has opened a spa in Stowe, Vermont, and another in the Berkshires, Massachusetts, and is now planning to open a third one in the East End’s South Fork of Long Island, New York. Alliston is eyeing an unused space owned by Orange Shores Inn. The space is located on the third floor of the main building. About 1/5 of the 10,000 sq. ft. space will be used to build a wide pathway with a garden trellis along the path to connect the main building to a new addition under construction. The rest of the space can be rented out to a third party.
Alliston spa has offered to lease the unused property with Orange Shores Inn for 4 years for a monthly rent of $22,000 for the first 2 years, and a 7% annual increase for the next two years
Orange spa has the following two options :.
Alliston spa. The Orange hotel has to make the space ready for lease. It has to set up the partitions and put in all the necessary plumbing and new flooring. The estimates for the up-front renovation costs range from $200,000 to $250,000 to be depreciated over the life of the project using straight-line with a zero salvage value. Any other spa-related installations will be assumed by Alliston. The existing elevators and toilets would be used by Alliston and, therefore, a pro-rata allocation of the costs of the facilities should be based on the area that will be used. It is estimated to be $11,000 per annum. In addition, there will be an allocation of $ 2,000 per annum to Alliston for any repair and maintenance costs that will be incurred. Alliston will pay all utilities and other operating expenses.
Orange Spa. If the hotel creates its own spa, the up-front investment is estimated to range between $200,000 to $230,000. Other capital investments will include the installations of whirlpools, sauna, and massage and facial rooms. These additional investments will amount to $150,000.
Revenues are expected to be generated 30% from hotel guests and the other 70% from outside bookings. Total sales are estimated to be $845,000 the first year of operation. This revenue has been arrived based on expected hotel bookings per year and prediction of demand for spa services from Long Island and the surrounding area. There will also be a spill-over effect from outside spa guests patronizing its own restaurant, adding additional covers per day. It is estimated that this will generate additional revenues of $55,000 per annum.
The project is estimated to last for 6 years. Sales are expected to grow at 4% per year. Estimates of the operating costs are as follows:
Salaries 15% of Sales
Other operating expenses 30% of Sales
Depreciation- equipment & furniture Straight-line; zero salve value
Capital expenditure Equal annual depreciation
Cost of Capital. Orange Shores Inn has a capital structure consisting of 40% debt and 60% equity. The debt consists of loans from the Long Island Bank with an interest rate of 6.8%. The cost of equity of the hotel shareholders is 16%. The corporate tax rate is 40%.
It is possible that the hotel will project a different image to the public if it offers spa services. Instead of a hotel that caters to families, it will be perceived more as a hotel that caters to couples and singles. This might have a negative impact in terms of attracting tourists traveling with children. The total patronage for the hotel might decline by 12%. Below is the projection on net room revenue for the next six years.
Projection of Net Room Revenue
(Room Sales – Room Operating Expenses)
|
Year |
1 |
2 |
3 |
4 |
5 |
6 |
|
Net Room Revenue |
$2,200,000 |
$2,400,000 |
$2,500,000 |
$2,600,000 |
$2,650,000 |
$2,700,000 |
In: Finance
In accounting, what are the main similarities and differences between a 200 rooms of 3 stars hotel and a 200 slots of 3 stars camping sites?
In: Accounting
writing pretend you are working in a hotel busness place describe how would you apply use ethic to be successfull as an employee in that workplace
In: Operations Management