Answer:
The question does not fit the options, since the options all refer to a 2% interest rate in US dollars and a 6% interest rate in euros. While the question states that the interest rate in US dollars is 5% and the interest rate in euros is 4%.
The answer to the question is:
If you borrow $1,000,000 today, you will be able to purchase 800,000€. Or if you borrow 800,000€ today, you will be able to purchase $1,000,000.
Since the forward rate is higher, you should borrow dollars, invest in euros and after a year, purchase back dollars and pay back your debt.
Gain:
= 800,000€ x 1.04 = 832,000€ x 1.4 = $1,164,800, then you pay back your loan = $1,164,800 - ($1,000,000 x 1.05) = $1,164,800 - $1,050,000 = $114,800 gain
Options C will also yield gains:
option C = borrow 800,000€ and buy $1,000,000. After one year you will have $1,020,000 which you can use to purchase 850,000€. Your gain = 850,000€ - (800,000€ x 1.06) = 2,000€
A borrower can obtain an 80 percent loan with an 8% interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 8.5% rate with the same loan term. The borrower plans to own the property for the entire loan term.
a. What is the incremental cost (%) of borrowing the additional funds? (Hint: the dollar amount of the loan does not affect the answer)
b. How would your answer change if two points were charged on the 90 percent loan?c. Would your answer to part (b) change if the borrower planned to own the property for only ve years?
Answer:
(a) 12.26037049%
(b) 15.34868967%
(c) 17.9626%
Explanation:
(a)
= [tex]RATE(12\times 25,PMT(\frac{8.5 \ percent}{12} ,12\times 25,1\times 90 \ percent)-PMT(\frac{8 \ percent}{12} ,12\times 25,1\times 80 \ percent),1\times 90\ percent-1\times 80 \ percent)\times 12[/tex]
= [tex]12.26037049[/tex]%
(b)
= [tex]RATE(12\times 25,PMT(\frac{8.5 \ percent}{12} ,12\times 25,1\times 90 \ percent)-PMT(\frac{8 \ percent}{12} ,12\times 25,1\times 80 \ percent),1\times 90 \ percent\times (1-2 \ percent)-1 \times 80 \ percent)\times 12[/tex]
= [tex]15.34868967[/tex]%
(c)
= [tex][RATE(12\times 5,-PMT(\frac{8.5 \ percent}{12} ,12\times 25,1\times 90 \ percent)+PMT(\frac{8 \ percent}{12} ,12\times 25,1\times 80 \ percent),-1\times 90 \ percent\times (1-2 \ percent)+1\times 80 \ percent],-[FV(\frac{8.5 \ percent}{12} ,12\times 5,PMT(\frac{8.5 \ percent}{12} ,12\times 25,1\times 90 \ percent),1\times 90 \ percent)]+[FV(\frac{8 \ percent}{12} ,12\times 5,PMT(\frac{8 \ percent}{12} ,12\times 25,1\times 80 \ percent),1\times 80 \ percent))\times 12][/tex]= [tex]17.9626[/tex]%
Note: percent = %
a scenario involving functions of a business
Scenario Analysis
Scenario AnalysisExploring Different Futures
Imagine that you're facing a really important decision. It's one that could fundamentally affect your personal life, or determine the future of your business.
You've crunched the numbers and looked at the data, and everything seems fine. But deep down, you dread what might go wrong.
No one has a foolproof vision of the future, and even if your instincts are good, the outcomes that you predict could be disrupted by a range of different factors. On the other hand, things may turn out far better than you expected!
In this article, we explore how Scenario Analysis can bring these hopes and fears into the open, give you a rational framework for exploring them, and enable you to make the best possible choices.
Types of Scenarios
Challenging your assumptions about the future, and basing your plans and decisions on the most likely outcomes, means that your decisions will more likely be sound, even if circumstances change.
But what are the most likely outcomes? Author and corporate strategist Peter Schwartz, one of the pioneers of scenario thinking, identified the following common scenarios:
Evolution: all trends continue as expected. Things gently move toward a predictable end point.
Revolution: a new, disruptive, factor fundamentally changes the situation.
Cycles: what goes around comes around. Boom follows bust follows boom follows bust.
Infinite Expansion: exciting trends continue. Think of the computer industry in the 1950s.
Lone Ranger: the triumph of the lone hero against the forces of inertia.
My Generation: changes in culture and demographics affect the situation.
The discussion about the book encourages teens to.
consider the ethics of certain scientific advances.
B
broaden what they consider dystopian literature.
explore environmental consequences of technology.
consider what happens when a person rebels against the norm.
The discussion about the book encourages teens to consider the ethics of certain scientific advances.
What is Dystopian Literature?This refers to the use of speculative fiction to show the readers the settings of a place where there is bad events happening as a result of the actions of humans.
With this in mind and from the complete text, we can see that there is the narration of why teens find the end of the world so appealing and this makes use of dystopian literature to show them dangers of current social and political structures.
Hence, the correct answer is that the book encourages teens to consider the ethics of certain scientific advances.
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Garrett works with the Construction Manager on the job site. Garrett makes sure everything is up to code in the new building. Garrett is a(n) Construction Laborer. Operating Engineer. Building Inspector. Cost Estimator.
The job of the building inspector is to keep a check on the undertaking of activities in a righteous manner. Garrett can be referred to as a Building Inspector.
What are the duties of a building inspector?
A building inspector is such a person who is required to keep a rigorous check on the compliance related to the new construction in the surroundings it is being built in.
Not just this, a building inspector is also required to assess whether the national building codes are followed up to the mark in the construction of a building.
In the above example, Garrett is seen assisting the construction manager on the job site to make sure whether everything is up to the building codes in the new building, and thus he follows the duties as that of an inspector.
Hence, option C; Garret who makes sure everything is followed up to the codes in the new building is a Building Inspector.
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True or False: A stop-payment fee is more expensive than paying a bounced-check fee and the value of the check itself.
I'm pretty sure it is false
A stop-payment fee is used if you write the wrong amount or the wrong recipient for a personal check. Stop-Payments ensure that you will not be charged for a purchase that you cancel after sending out the check. Most banks charge the account holder a fee of 15$ - 35$ for each stop payment order
A bounced-check fee is if your financial institution does not cover the check, it then bounces and returns to the depositor's bank. You'll most likely be charged for a penalty for the rejected check; this is a nonsufficient funds fee, the costs are around 35$ or more depending on your specific financial institution
Fancy Nails has an estimated cost for supplies of $0.75 per manicure. June's budget was based on 2,400 manicures and a total cost for supplies of $1,800. June's actual activity was 2,500 manicures. The actual cost of supplies in June was $2,000. Calculate the spending variance for June.
Assuming the actual cost of supplies in June was $2,000, the spending variance for June is $125 U.
Spending varianceUsing this formula
Spending variance=Flexible budget-Actual activity
Let plug in the formula
Spending variance=($0.75 x 2,500 manicures)- $2,000
Spending variance=$1,875 - $2,000
Spending variance = $125 U
Inconclusion the spending variance for June is $125 U.
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{Easy} Risks are a part of any business, What type of risks are faced by the entrepreneurs below? Ryan's employees work in a coal mine that carries risk of injury. This is a(n) _____ risk. Angie's restaurant is located in a flood zone. This is an)____
risk.
Options 1
*External
*Uncontrollable
*Internal
Option 2
*Internal
*External
*Controllable
Answer:option 1: internal
option2: external
Explanation:
i took the test
Answer: 1: internal
2: external
Explanation: took the test
A company had beginning inventory of 5 units that cost $10 each. During the month, 15 units were purchased for $11 each. The company sold 12 units during the month and had 8 remaining in ending inventory. If the company uses FIFO to calculate cost of goods sold, then its gross profit will be $5
It is true that the gross profit will be $5, If the company uses FIFO to calculate cost of goods sold.
What is FIFO?First-in, first-out (FIFO) is a valuation method in which the assets produced or acquired first are sold, used, or disposed of first.
Under First in First out method, items that were purchased first will be availed for sale first. In this case, the opening stock of 5 at $10 items will be sold first. An additional 7 units will be required from the next batch of purchases at $11.
The costs of the first 12 units will be
= (5 x 10)+ (7 x 11)
= 50 +77
= $127
With LIFO, the items acquired last will be sold first. In this case, the 12 items sold will come the batch of 15 purchased at $11 in the months
Using LIFO, the cost of goods available for sale.
= 12 X $11
= 132
The difference is the costs of goods available for sale is $ 5, with FIFO having a lower cost. It means FIFO profits will be $5 more.
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If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be reported as:.
Defend or critique the following statement, using supporting evidence: “Getting to work early on your first day at a new job is the best way to impress your boss.”
Answer:
Dressing well, being prepared, having a positive attitude, arriving early for work and asking good questions.
Explanation:
Answer:
^^that one is right, its the sample answer
Explanation:
You are considering paying $700 per year for a health plan that pays 70% of the first $1,000 of medical costs and 100% of any additional costs over that. If your total medical expenses for the year are $900, is it worth it for you to get the plan?.
Based on the cost of the health plan and the total medical expenses for the year, it is not worth it for you to get the plan.
Is it worth it to get the plan?In order to determine if it is worth it to get the plan, compare the cost of the health plan to your medical expenses for the year. If your medical expenses for the year is less than the cost, then the plan is worth it.
Medical expense covred by plan is zero since your medical expense is less than $100. Thus the plan is too expensive.
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distinguish between character formating and paragrapgh formating
Answer:
A character style is a collection of character formatting attributes that can be applied to text in a single step. A paragraph style includes both character and paragraph formatting attributes and can be applied to a paragraph or range of paragraphs. Paragraph styles and character styles are found on separate panels.
You own a store in Simpsons Square Mall. Items in the compactor should weigh no more than
10 pounds
20 pounds
40 pounds
50 pounds
60 pounds
Explanation: From a similar question like this, I believe the answer is 40
why do you suppose California and Texas have the highest concentrations of federal employees outside of the Washington DC region? use your knowledge of geography and the location of the states on this map to guide your decisions (select all that apply)
A. both states have large seaports handling petroleum and another imports each year .
B. both states are important producers of agricultural products for the nation.
C. both states maintain international borders.
D. California headquarters the U.S air force and Texas headquarters the army.
Answer:
I hope this helps
Explanation:
The answer is B
The ability to obtain intellectual properly protection on key aspects of the business is most likely an issue related to ___________ .
PLEASE ANSWER FAST
Answer:
resource sufficiency
Explanation:
Resource sufficiency refers to an ability for a certain business to get enough resources that they need to scale their operation. Obtaining intellectual property is one of the way that a business can get to secure resource sufficiency.
Intellectual property can be used to prevent other businesses to make a similar product as you. This will eliminate the competitions and cut down the amount of money that you need to spend on marketing. In the end this will resulted in higher amount of capital that can use to scale the businesses.
Alanco, inc. Manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to alanco. The controller has asked you to help evaluate this offer to determine if the company should make or buy the component. Use the information included in the excel simulation and the excel functions described below to complete the task.
Without the excel simulation, the make-or-buy decision can be determined for Alanco, Inc. as follows:
Make Buy Difference
Direct materials per unit $4.00
Direct labor 6.00
Variable manufacturing
overhead 2.00
Total variable costs $12.00
Traceable fixed overhead 5.00
Total relevant costs $17.00 $21.00 $4.00
Additional cost of buying the component parts = $4,800 ($4 x 1,200)
Thus, Alanco, Inc. should continue to make the parts, as it is more cost-effective than buying from the outside supplier.
What is a make-or-buy decision?A make-or-buy decision is a financial decision that decides if a product or part should be manufactured in-house or bought from outside suppliers.
The making of a make-or-buy decision depends on the relevant costs.
Question Completion:Make Buy
Direct materials per unit $4.00
Direct labor 6.00
Variable manufacturing
overhead 2.00
Total variable costs $12.00
Traceable fixed overhead 5.00
Total $17.00
Fixed manufacturing
Common 8.00
Total costs $25.00 $21.00
Thus, the make-or-buy decision shows that Alanco, Inc. should continue to make the part instead of buying from the outside supplier.
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(Easy) Select the correct answer. Under which market structure does a firm have negligible influence over product pricing? {P!a+0}
A. perfect competition
B. monopoly
C. oligopoly
D. monopolistic competition
E. command economy
Chelsea’s manager sent her an email asking to meet, for an unspecified reason, the following friday. Upon reading this email, chelsea remembered a situation six months prior when her manager sent such as email to another team member. During that meeting, the team member was laid off from the organization. Based on this recollection, chelsea is extremely worried about the upcoming meeting with her boss. Which type of bias is being represented?.
The type of bias which is being represented is:
Representative biasWhat is Representative Bias?This is a type of bias which has to do with the similarity of events and a belief that such an action would repeat.
With this in mind, we can see that because Chelsea has a fear of being sacked because there was a similar situation six months ago when a colleague was sacked, then this is a Representative bias
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True or False: Bonds tend to be high-risk investments.
The flexible budget performance report consists of ______. Multiple select question. the manager's performance evaluations the planning budget, flexible budget and actual results revenue and spending variances activity variances
The flexible budget performance report consists of the following:
Planning budget, flexible budget and actual results.Revenue and spending variances.Activity variances.What is flexible budget performance report?A flexible budget performance report can be defined as the type of report that use by management of a company to measure the actual revenue generated with the budgeted revenue.
Flexible budget performance report is important for company or organization as they use it for performance evaluation.
Inconclusion the flexible budget performance report consists of Planning budget, flexible budget and actual results.
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Edria was faced with a situation in which she was given sensitive information about twenty different clients, including their social security numbers and bank statements. Which trait does Edria have that prevents her from selling the sensitive information? creativity logic integrity independence.
The trait that Edria has that prevents her from selling sensitive information is integrity.
What is integrity?Code integrity is a threat security dimension that contains the manipulators and system files on the device for signs of breakdown or hostile software.
The fundamental manner of the integrity threat is changing messages/signals or media after precluding them in the center of the web.
For code integrity to work on your device, another security feature called Secure Boot must be enabled.
In the above case, Edria was encountered with a condition in which she was provided sensitive details about 20 different clients, considering the social security numbers and the bank statements.
The integrity on edge helps Edria to solve the condition by having sensitive information about the clients.
Therefore, option C is correct.
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Answer:
C. Integrity
Explanation:
Edge
Subsistence agriculture is always characterized by.
Answer: subsistence farming.
Explanation: A form of farming in which nearly all of the crops or livestock raised are used to maintain the farmer and the farmer's family, leaving little, if any, surplus for sale or trade.
some of the information you can expect to find on a credit report.
Answer:
That will be the types of accounts for example, a credit card, mortgage, student loan, or vehicle loan, the date those accounts were opened, your credit limit or loan amount, account balances, and your payment history.
Explanation:
Hope this helped :)
If the United States had negative net exports, it Question 6 options: sold more abroad than it purchased abroad and has a trade surplus. sold more abroad than it purchased abroad and has a trade deficit. bought more abroad than it sold abroad and had a trade surplus. bought more abroad than it sold abroad and had a trade deficit.
If U.S bought more abroad than it sold abroad and had a trade deficit, it will have negative net exports.
What is a negative net export?A negative net export means a trade deficit which occurs because the overall value of the country's imports is greater than the overall value of its exports.
Hence, when its bought more abroad than it sold abroad and had a trade deficit, it will have negative net exports.
Therefore, the Option D is correct.
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The strategy of making work interesting and motivating employees by moving them from one job to another is called job.
The strategy of making work interesting by moving them from one job to another is called job rotation.
What is job rotation?Job rotation can be defined as the way of moving an employee to work from one department to another department within the same organization or company.
Job rotation is important as it enables employee to gain more skills, experience and as well gives the employee the opportunity to work on different job roles.
Inconclusions the strategy of making work interesting by moving them from one job to another is called job rotation.
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How might right to work laws affect the success of collective bargaining at a company.
Answer: reduce the union's bargaining strength,
Explanation:
The Jones Jewelry company has located the design and production of its jewelry operations offshore; the jewelry is being produced in Bangladesh. As a result, Jones Jewelry is exposed to all the following risks EXCEPT risks from _______.
As a result of Jones Jewelry locating the design and production of its jewelry operations offshore while producing in Bangladesh, Jones Jewelry is exposed to all the following risks EXCEPT risks from A. highly uniform quality standards.
What are the risks faced by multinational companies?The risks faced by multinational companies include:
Institutional failuresCrimePolitical instability and violence (geopolitical conflicts, foreign nationalization of assets)Fluctuations in currency exchange rates.Answer Options:A. highly uniform quality standards.
B. foreign nationalization of assets
C. geopolitical conflict
D. unintended knowledge leakage to foreign competitors
Thus, the only risk that Jones Jewelry may not be exposed to is A. highly uniform quality standards.
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What can disqualify you from unemployment benefits.
Answer:
Quit without good cause.Were fired for misconduct.Didn't earn enough in your benefit year.Weren't employed long enough.Were self-employed.Provided false information on your unemployment compensation application.Did not actively look for a new job.Perfect Pasta plans to open five new stores before 2018. However, if the economy does not improve and if consumer confidence does not rise as hoped, it might open just two stores. This backup plan is an example of a(n) ________ plan
Bianca, the CEO of Solar Tiles, has only three people reporting to her: the vice president of marketing, vice president of HR, and vice president of accounting. Bianca has a
If Bianca, the CEO of Solar Tiles, has only three people reporting to her. Bianca has a: Narrow span of control.
What is narrow span of control?Narrow span of control can be defined as a form of managerial style in which the director or CEO of a company or an organization only control a little number of employees.
Based on the given scenario the CEO is making use of narrow span of control as only three employees are reporting to her.
Inconclusion Bianca has a: Narrow span of control.
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