Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) One year ago, the American investor bought 1000 shares of London Bridges at price of= £22 (or 22 UK pounds) per share when exchange rate was= $1.5/1£ (or $1.50 dollars = 1 pound). Investor also invested 800,000 Japanese Yen in money market fund in Japan last year when exchange rate was 85 Yen = $ 1 US.

(a) B y using current exchange rates, what is today’s value of investor’s portfolio in U.S. dollars if UK investment decreased 5% (in local currency) and Japan investment increased 1% (in local currency)?

(b) Determine the overall rate of return on portfolio over last year?

2) American firm is estimating the investment in Mexico. Project will need purchasing equipment from variety of sources and shipping it to Mexico. Projected cost of buying equipment and shipping it is $3.7 million. Once project begins operations, it is expected to last for five years (suppose straight line depreciation). Expected sales are $1,700,000 each year in U.S. and costs of project are projected to be 6 million pesos each year for the five years. If taxes are 35%, the suitable discount rate is 9% and you use present exchange rate for pesos:

(a) Compute NPV in U.S. dollars.

(b) Compute NPV in Mexican pesos.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914660

Have any Question? 


Related Questions in Basic Finance

1 what are placebo effects and how can they be avoided2

1. What are placebo effects, and how can they be avoided? 2. What are demand characteristics, and how can they be avoided? 3. In what ways may experimenters unwittingly communicate their expectations to research particip ...

Assignemnt investment and pension trust funds1 describe

Assignemnt: Investment and Pension Trust Funds 1. Describe GASB requirements for accounting for Investment Trust Funds, (a) a discussion of when the use of investment trust funds is appropriate. (b) the investments to be ...

1 why could an insurance company with substantial

1. Why could an insurance company with substantial investments in real estate represent a risk? 2. For an insurance company, describe the difference between GAAP reporting and SAP reporting of deferred policy acquisition ...

Analyze the financial condition of carters inc ticker cri

Analyze the financial condition of Carter's, Inc. (ticker: CRI) over the last five years. Use financial ratios that relate to its liquidity, activity, debt, profitability, and market value. In which areas has the company ...

Case study questions -1 estimate green earths valuation for

Case Study Questions - 1) Estimate Green Earth's valuation for Charlotte Mill a) Estimate separately each of the components of the relevant WACC for the valuation, and the WACC itself. State explicitly the assumptions yo ...

Explain why examining the earnings quality is important in

Explain why examining the earnings quality is important in valuation even though one uses cash flows for valuing projects and firms.

Activity-based costing caterpillar comparison essay

Activity-Based Costing / Caterpillar comparison essay assignment After reading thoroughly the article entitled ‘Product Costing at Caterpillar' by Lou F. Jones from Management Accounting, February 1991, your assignment i ...

Final project - fire 650refer to the template spreadsheet

Final Project - FIRE 650 Refer to the template spreadsheet provided.  Stock A has an annualized volatility equal to 18% for which you have just written an out-of-the-money 26 week call option.  The risk free rate is 2% p ...

Go to the home page of cisco systems inc httpwwwciscocom

Go to the home page of Cisco Systems, Inc. (http://www.cisco.com) and link to its financial reports page. Download the most recent annual report and observe the capital investment and dividend policies of Cisco Systems. ...

An article in the wall street journal in early 2010 noted

An article in the Wall Street Journal in early 2010 noted: "Some small business owners say they could expand if they could just get a loan." Over the past 35 years, has making loans to small business become a more import ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro