+1-415-315-9853

info@mywordsolution.com

## Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

1) You wish to purchase the new sports car from Muscle Motors for= \$79,000. Contract is in form of 48-month annuity due at 7.30% APR. Determine the monthly payment?

2) Omega Industries, U.S MNC, is contemplating making the foreign capital expenditure in SA. Initial cost of project is= ZAE10000. Annual cash flows over the 5 year economic life of project in ZAR are evaluated to be 3000, 4000, 5000, 6000 and 7000. Parent firm's cost of capital in dollars is 9.5%. Long run inflation is predicted to be 3% per annum in U.S and 7 percent in SA. Present spot foreign exchange rate is= ZAR/USD = 3.75. Find out the NPV for the project in USD by:

a) Computing NPV in ZAR by using ZAR equivalent cost of capital according to Fischer Effect and converting to USD at present spot rate.

b) Converting all cash flows from ZAR to USD at buying power parity predict exchange rates and then computing the NPV at dollar cost of capital.

c) Determine the NPV in dollars if actual pattern of ZAR/USD exchange rate is: S(0) = 3.75, S(1) = 5.7, S(2) = 6.7, S(3) = 7.2, S(4) = 7.7, and S(5) = 8.2?

Basic Finance, Finance

• Category:- Basic Finance
• Reference No.:- M915346

Have any Question?

## Related Questions in Basic Finance

1. Compare the advantages and disadvantages of using interviews versus questionnaires in survey research. 2. Compare a sample and a population. Under what circumstances can a sample be used to draw conclusions about a po ...

### A poll conducted by the new york times shows candidate a

A poll conducted by the New York Times shows candidate A leading candidate B by 33 to 31 percent. A poll conducted by the Washington Post shows candidate B leading candidate A by 34 to 32 percent. If the margin of error ...

### In formulating key concept exercise consider the following

In formulating Key Concept Exercise, consider the following questions: What are the benefits of just-in-time (JIT) techniques? What types of organisations use JIT techniques? Should things change if they are running smoo ...

### Calculate the total lift force on the arctic hut shown

Calculate the total lift force on the Arctic hut shown below as a function of the location of the opening. The lift force results from the difference between the inside pressure and the outside pressure. Assume potential ...

### Financial assignmentpart 1 at november 30 2012 silver

Financial Assignment Part 1: At November 30, 2012, Silver Traders Company had the following trial balance. There is detailed information on the next page about December 2012 transactions that need to be recorded. Silver ...

### Analysis of denver furniture corpdenver furniture corp is

Analysis of Denver Furniture Corp. Denver Furniture Corp. is nationally recognized for making high-quality products. Management is concerned that the company is not fully exploiting its brand power. Denver's production m ...

### Mike riskless is considering two projects he has estimated

Mike Riskless is considering two projects. He has estimated the IRR for each under three possible scenarios and assigned probabilities of occurrence to each scenario. State of Economy Probability Estimated BTIRR Investme ...

### 1 describe the progress of the research manuscript as it is

1. Describe the progress of the research manuscript as it is considered for publication in a scientific journal. What are the strengths and weaknesses of the peer review process? 2. Describe the basic objectives of the r ...

### Go to wwwstlouisfedorgfred2 and under categories select

Go to www.stlouisfed.org/fred2/ and under Categories select "Exchange Rates." Select "monthly rates" and graph the euro, the yen, and the Canadian dollar against the U.S. dollar for the years 2001-2010. Answer the follow ...

### 1 could a profit-oriented enterprise use fund accounting

1. Could a profit-oriented enterprise use fund accounting practices? Comment. 2. How many members serve on the GASB? How many votes are needed to issue a pronouncement? 3. What is the purpose of the book, Codification of ...

• 13,132 Experts

## 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.

### 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