a. Based on the return on investment (ROI) and desired return of 20% compounded monthly, this is not a good investment. b. The property should be sold for $296,016.
a. To determine if this is a good investment, we need to calculate the return on investment (ROI) and compare it to the desired return of 20% compounded monthly.
1. First, let's calculate the total cost of the investment:
Acquisition cost: $200,000
Acquisition-related expenses: $10,500
Repair costs: $2,000 x 12 = $24,000
Financing cost: $180,000 x 0.0425 x 12 = $9,180
Selling expenses: $3,000
Total cost = $246,680
2. Next, let's calculate the ROI:
ROI = (Sale price - Total cost) / Total cost
ROI = ($225,000 - $246,680) / $246,680
ROI = -0.0878 or -8.78%
Since the ROI is negative and less than the desired return of 20% compounded monthly, this is not a good investment.
b. To achieve a 20% return compounded monthly, we need to solve for the sale price in the ROI equation:
0.20 = (Sale price - $246,680) / $246,680
Sale price = $246,680 x 1.20 + $246,680
Sale price = $296,016
Therefore, you would need to sell the property for $296,016 in order to achieve a 20% return compounded monthly.
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a Define 'productivity'.
Answer: the state or quality of producing something
Explanation:
verified
Discussion Topic:- How do LEGO products get from their manufacturer in Denmark to toy stores in the United States? Describe your answer clearly and specifically.
the process of getting LEGO products from their manufacturer in Denmark to toy stores in the United States involves a complex supply chain, including production, packaging, shipping, customs, distribution, and delivery.
1. Production: The first step in the process is the production of LEGO products at the manufacturer in Denmark. The LEGO Group has factories in Billund, Denmark, where the majority of its products are produced.
2. Packaging: After the LEGO products are produced, they are packaged and prepared for shipping.
3. Shipping: The packaged LEGO products are then shipped from Denmark to the United States. This is typically done via cargo ships, which can carry large amounts of goods across the ocean.
4. Customs: Once the LEGO products arrive in the United States, they must go through customs, where they are inspected and any necessary duties or taxes are paid.
5. Distribution: After clearing customs, LEGO products are distributed to various warehouses and distribution centers throughout the United States.
6. Delivery: The final step in the process is the delivery of LEGO products to toy stores across the United States. This is typically done via trucks, which transport the products from the warehouses and distribution centers to the stores.
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2. Minor maintenance costs for a certain machine are expected to be $5,000 per year during the first 5 years, and $6,000 per year during the last 7 years of its 12 year useful life. Major maintenance with a cost of $15,000 is needed at year 6. How much is the total annual equivalent maintenance cost for this machine if the MARR is 18% per year.
Explanation:
To calculate the total annual equivalent maintenance cost (TAE), we need to find the present worth of all maintenance costs over the 12-year useful life of the machine, and then convert it to an equivalent annual amount using the formula for the annual worth factor.
First, let's find the present worth of the minor maintenance costs during the first 5 years of the machine's life:
PW1 = $5,000 * ((1 - 1/((1+0.18)^5))/0.18) = $19,107.44
Next, let's find the present worth of the minor maintenance costs during the last 7 years of the machine's life:
PW2 = $6,000 * ((1 - 1/((1+0.18)^7))/0.18) = $31,088.31
Now, let's find the present worth of the major maintenance cost at year 6:
PW3 = $15,000 / (1+0.18)^6 = $6,372.62
Finally, we can add the three present worths together to get the total present worth of all maintenance costs:
PWtotal = PW1 + PW2 + PW3 = $19,107.44 + $31,088.31 + $6,372.62 = $56,568.37
To convert this to an equivalent annual amount, we can use the formula for the annual worth factor:
AWF = (0.18(1+0.18)^12)/((1+0.18)^12 - 1) = 0.2653
TAE = PWtotal * AWF = $56,568.37 * 0.2653 = $15,026.39
Therefore, the total annual equivalent maintenance cost for this machine is $15,026.39.
The total annual equivalent maintenance cost for this machine if the MARR is 18% per year is $10,380.17. This is calculated by summing the present value of each of the maintenance costs for each year of its useful life. The formula for calculating the present value of each cost is:
Present Value = Cost / (1 + MARR)^Year
Year 1: $5,000 / (1 + 0.18)^1 = $4,180.92
Year 2: $5,000 / (1 + 0.18)^2 = $3,450.20
Year 3: $5,000 / (1 + 0.18)^3 = $2,792.20
Year 4: $5,000 / (1 + 0.18)^4 = $2,208.20
Year 5: $5,000 / (1 + 0.18)^5 = $1,692.20
Year 6: $15,000 / (1 + 0.18)^6 = $11,059.86
Year 7: $6,000 / (1 + 0.18)^7 = $4,275.37
Year 8: $6,000 / (1 + 0.18)^8 = $3,315.24
Year 9: $6,000 / (1 + 0.18)^9 = $2,530.41
Year 10: $6,000 / (1 + 0.18)^10 = $1,927.91
Year 11: $6,000 / (1 + 0.18)^11 = $1,485.87
Year 12: $6,000 / (1 + 0.18)^12 = $1,123.50
The sum of the present values is $10,380.17, which is the total annual equivalent maintenance cost for this machine if the MARR is 18% per year.
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1. "Development finance plays an important in expanding capital availability to finance economic growth and development". Discuss.
2. As a Development Finance Expert, what policy interventions would you propose for attracting remittances? How do international remittances influence growth and development?
3. The Ghana Government established a National Development Bank in 2021 (Development Bank Ghana) with funding from the World Bank, European Investment Bank (EIB) and KfW Development Bank. What are the motivations for establishing a National Development Bank in Ghana? What challenges do you envisage such a bank will encounter?
Note:
• Length of each assignment: Maximum 5 pages long (New Times Roman, font size 12, 1 ½ space).
1. Development finance is a type of financial service that is dedicated to providing capital to businesses and organizations that are engaged in activities related to economic growth and development.
2. To attract remittances, policy interventions should focus on lowering the costs of sending money abroad, as well as ensuring that remittances are directed to areas where they can be used most effectively.
3. The Ghana Government established the Development Bank Ghana (DBG) in 2021 with funding from the World Bank, the European Investment Bank (EIB) and KfW Development Bank.
1. Development finance aims to create positive economic, social and environmental impacts, as well as generate financial returns. Development finance is a key element of financial inclusion, as it encourages increased access to capital, investment, and innovation.
Development finance can be used to finance large-scale projects such as infrastructure, as well as smaller-scale projects that support small businesses and entrepreneurs. It also has an important role to play in addressing poverty and inequality, as it can provide capital for activities that promote economic inclusion, such as microfinance and access to housing and education.
2. Remittance transfer fees should be kept as low as possible, and public and private sector initiatives should be introduced to promote financial literacy and awareness of remittance services. Other initiatives could include the creation of low-cost remittance corridors, the development of innovative remittance services such as mobile money, and the creation of diaspora savings schemes.
3. The motivations for establishing the DBG are to increase access to finance, boost economic growth, and promote poverty reduction and financial inclusion. The bank is expected to facilitate private sector investment in small and medium-sized enterprises (SMEs), provide risk capital for new and innovative businesses, and offer financing for infrastructure projects.
The challenges that the DBG is likely to face include limited capacity and resources to implement projects and manage risk, as well as difficulty in accessing additional capital. The bank is also likely to face challenges in dealing with the competing interests of its donors and shareholders, as well as managing its own financial resources. In addition, the bank may encounter resistance from local stakeholders, who may have different priorities and objectives than the DBG.
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What are some ways that you've seen department stores,online stores , online stores,or social media ads try to activate the amygdala and encourage you to buy products
I can provide some examples of how retailers and advertisers try to activate the amygdala and encourage consumers to make purchases.
One way is through the use of persuasive language that creates a sense of urgency or scarcity. Retailers may use phrases such as "limited time only" or "while supplies last" to create a sense of urgency, while online stores may use pop-ups or banners to display how many items are left in stock.
Another way is through the use of social proof, such as customer reviews or celebrity endorsements, to create a sense of popularity and desirability around a product. This can activate the amygdala by making consumers feel like they are missing out on something if they don't also make a purchase.
Additionally, personalization and targeted advertising can create excitement and anticipation for a product, while emotional messaging or imagery can create a positive association between the product and a particular feeling or lifestyle, such as happiness or luxury. These tactics can all activate the amygdala and encourage consumers to make an emotional connection with the product and ultimately make a purchase.
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A bond with a yearly coupon of 5% matures in one year. Thepenultimate coupon has just been paid. The Macauley duration of thebond in years is
The Macaulay duration of the bond in question is 1 year. The Macaulay duration of a bond is a measure of the average time that cash flows from the bond are received.
It is calculated by taking the weighted average of the time to maturity for each cash flow, where the weights are the present values of the cash flows.
In the case of the bond in question, there is only one cash flow remaining, which is the final coupon payment and the repayment of principal at maturity in one year. Therefore, the Macaulay duration of the bond is simply 1 year.
In mathematical terms, the Macaulay duration is calculated as follows:
D = ∑t*PV(CFt)/∑PV(CFt)
Where:
D = Macaulay duration
t = time to maturity for each cash flow
PV(CFt) = present value of each cash flow
In this case, there is only one cash flow at t=1, so the equation simplifies to:
D = 1*PV(CF1)/PV(CF1) = 1
Therefore, the Macaulay duration of the bond in question is 1 year.
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Problem 4-18 Cost–Volume–Profit Analysis; Degree of Operating Leverage [LO1, LO3, LO4, LO5, LO8] Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $8 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows:
The break-even point for Feather Friends, Incorporated is 16,667 units, the margin of safety is 8,333 units, the degree of operating leverage is 3, and the operating income is $100,000.
1. Break-even point: The break-even point is the point at which total revenue equals total costs. It can be calculated by dividing the fixed expenses by the contribution margin per unit (selling price - variable expenses). In this case, the break-even point is:
Break-even point = $200,000 / ($20 - $8) = $200,000 / $12 = 16,667 units
2. Margin of safety: The margin of safety is the difference between the actual sales and the break-even point. It can be calculated by subtracting the break-even point from the actual sales. In this case, the margin of safety is:
Margin of safety = Actual sales - Break-even point = 25,000 units - 16,667 units = 8,333 units
3. Degree of operating leverage: The degree of operating leverage is a measure of how sensitive the operating income is to changes in sales. It can be calculated by dividing the contribution margin by the operating income. In this case, the degree of operating leverage is:
Degree of operating leverage = Contribution margin / Operating income = ($12 x 25,000 units) / ($12 x 25,000 units - $200,000) = $300,000 / $100,000 = 3
4. Operating income: The operating income is the difference between the total revenue and the total expenses. It can be calculated by subtracting the total expenses from the total revenue. In this case, the operating income is:
Operating income = Total revenue - Total expenses = ($20 x 25,000 units) - ($8 x 25,000 units + $200,000) = $500,000 - $400,000 = $100,000
Therefore, the break-even point, margin of safety, degree pf operating leverage and the operating income for Feather Friends Incorporated is 16,667 units, 8,333 units, 3, and $100,000 respectively.
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1. History of USSR and independence of Ukraine. Influence of Russia in the politics of Ukraine.2. How can MNCs prepare in case of further escalation?Instructions•Answer briefly•Focus on IB impacts.•Refrain from personal judgment or opinion.•Use bullet points & charts/graphs where applicable.
1. • The Soviet Union (USSR) was a union of 15 Soviet socialist republics created in 1922 and dissolved in 1991.
• Ukraine declared independence from the Soviet Union on August 24th, 1991.
• Since then, Russia has maintained strong economic and political ties with Ukraine.
• Russia has a significant influence on Ukraine's politics and policies, including with regards to the military and energy.
2. 'How can MNCs prepare in case of further escalation?'
• MNCs should monitor the geopolitical situation closely, stay up to date on any potential changes and any potential risks that may arise from those changes.
• They should have contingency plans in place to address any possible risks, including changes in regulations, trade restrictions, sanctions, or other disruptions in supply chain and market access.
• MNCs should also assess any potential impacts on their operations and investments in the region, and be prepared to adjust their business strategies accordingly.
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Frank Manzano owns 60% of Manzano and Sons, Inc., a manufacturing company. His son, Frank Jr. owns the other 40%. Frank wants to retire and let Jr. take over so he sets up the following transaction: The corporation will redeem all of his stock for $3,000,000 and will file an affidavit with the IRS agreeing to have nothing to do with the operations of the business for 10 years. Note that he has a basis is his stock of $1.4 million.
However, there is a complication. He owns the building and land that the company works out of himself and receives lease payments of $120,000/year for the property. This would continue after he retires. These payments have been determined to be reasonable under IRS guidelines.
Question: What are the tax consequences of this transaction (the redemption) to Frank?
The tax consequences of this transaction for Frank include capital gains tax on the redemption of his stock, tax on the lease payments he receives, and the removal of self-employment tax on any income he receives from the business after he retires.The tax consequences of this transaction for Frank are explained.
1. Capital Gains Tax: Frank will have to pay capital gains tax on the difference between the redemption price ($3,000,000) and his basis in the stock ($1,400,000). This means that he will have to pay tax on a gain of $1,600,000.
2. Lease Payments: Frank will continue to receive lease payments of $120,000/year after he retires. These payments are considered passive income and will be taxed at the appropriate tax rate.
3. Affidavit with the IRS: By filing an affidavit with the IRS agreeing to have nothing to do with the operations of the business for 10 years, Frank is effectively removing himself from the business. This means that he will not be subject to self-employment tax on any income he receives from the business during this time.
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A company is looking into investing in renewable energies which would involved the following investement and expected cash flows :
II CF Initial investment 13,500,000 Cash flow year 1 4,945,000 Cash flow year 2 5,601,222 Cash flow year 3 4,684,525 From the BCR (benefit cost ratio) or PI (profitability index) point of vue, would you recommend this investment and why ?
A company is looking into investing in renewable energies which would involved the following investement and expected cash flows : II CF Initial investment 13,500,000 Cash flow year 1 4,945,000 Cash flow year 2 5,601,222 Cash flow year 3 4,684,525 From the BCR (benefit cost ratio) or PI (profitability index) point of vue, This investment appears to be a good one. Since the BCR for this investment is 1.14, it is expected to generate a positive return
The Benefit Cost Ratio (BCR) or Profitability Index (PI) is a financial metric used to evaluate the feasibility and profitability of an investment. It is calculated by dividing the total present value of expected cash flows by the initial investment.
In this case, the BCR or PI would be:
BCR = (4,945,000 + 5,601,222 + 4,684,525) / 13,500,000 = 1.14
A BCR or PI greater than 1 indicates that the investment is expected to generate a positive return, and therefore, would be a profitable investment. Since the BCR for this investment is 1.14, it is expected to generate a positive return and would be a recommended investment.
However, it is important to consider other factors such as the risk associated with the investment, the company's overall financial situation, and the availability of alternative investment options before making a final decision.
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All of the following are true about Roth IRAs,
except:
Group of answer choices
contributions to a Roth IRA are made with pretax dollars.
the broad range of investment options in Roth IRAs offer higher
The Statement "contributions to a Roth IRA are made with pretax dollars" is NOT true about Roth IRAs.
Roth IRAs are individual retirement accounts that are funded with after-tax dollars, meaning that contributions are not tax deductible. However, the earnings and withdrawals from a Roth IRA are tax-free, as long as certain conditions are met.
In contrast, traditional IRAs are funded with pretax dollars, meaning that contributions are tax deductible. However, the earnings and withdrawals from a traditional IRA are subject to income taxes.
It is also true that Roth IRAs offer a broad range of investment options, including stocks, bonds, and mutual funds, which can potentially offer higher returns than other types of retirement accounts. However, it is important to remember that all investments come with some level of risk, and there is no guarantee of higher returns.
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The Million Dollar Mission You're sitting in math class, minding your own business, when in walks a Bill Gates kind of guy - the real success story of your school. He's made it big, and now he has a job offer for you. He doesn't give too many details, mumbles something about the possibility of danger. He's going to need you for 30 days, and you'll have to miss school. (Won't that just be too avful?) And you've got to make sure your passport is current. (Ok - no big deal). But do you ever sit up at the next thing he says: You'll have your choice of two payment options: 1 One cent on the first day, two cents on the second day, and double your salary every day thereafter for the thirty days; or 2. Exactly $1,000,000. (That's one million dollars!) You jump up out of your seat at that. You've got your man, Bill, right herel You'll take that million. You are there. And off you go on this dangerous million-dollar mission. So how smart was this guy? Did you make the best choice? Before we decide for sure, let's investigate the first payment option. Complete the table for the first week's work. So, atter a whole week you would have only made. That's pretty awful, all right. There's no way to make a million in a month at this rate. Right? Let's check out the second week. Complete the second table. We're getting into some serious money here now, but still nowhere even close to a million. And there's only 10 days left. So it looks like the million dollars is the best deal. Of course, we suspected that all along. Hold itl Look what has happened. What's going on here? This can't be right. This is amazing. Look how fast this pay is growing. Let's keep going. I can't wait to see what the total will be. In 30 days, it increases from 1 penny to over dollars. That is absolutely amazing! Explain what should be the best choice of pay for the 30 day period. Explain what type of function is modeled in the first option. Determine the initial amount and multiplier used to determine each day's pay, where
t=0 would be day 1 (fill in the blanks):
The best choice of pay for the 30 day period would be the first option, where you receive one cent on the first day, two cents on the second day, and double your salary every day thereafter for the thirty days. The type of function that is modeled in the first option is an exponential function. This is because the amount of money you receive each day is increasing at an exponential rate, meaning that it is doubling each day.
This is because, although it may seem like the second option of receiving exactly $1,000,000 is the better choice, the first option actually results in a larger amount of money by the end of the 30 days.
The type of function that is modeled in the first option is an exponential function. This is because the amount of money you receive each day is increasing at an exponential rate, meaning that it is doubling each day.
The initial amount for this exponential function is 1 cent, or $0.01, and the multiplier is 2, since the amount of money you receive each day is doubling. Therefore, the function can be written as f(t) = 0.01(2)^t, where t=0 would be day 1.
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Question 8 (13 marks) When the last sale price of EFG is $15, I enter a stop loss order to sell at $12 trailing by $3. In which of the following situations does my order get triggered? State what the corresponding series of stop prices are and finally whether it is triggered or not and the triggered price.
a. (3 marks) $15 is followed by trades at $14, S13 and $15.
b. (3 marks) S15 is followed by trades at $16, S14 and $15.
C. (3 marks) $15 is followed by trades at $ 17, $15, $14 and $16.
d. (4 marks) $15 is followed by trades at $ 16, $18, $19, $17, $18 and $16.
Answer:
In a stop loss order, the order is triggered when the price of the security falls below a certain level. In this case, the stop loss order is set at $12, trailing by $3. This means that the order will be triggered when the price falls below $12, and will continue to follow the price at a distance of $3 until it is triggered.
a. In this scenario, the stop loss order is not triggered, as the price does not fall below $12. The series of stop prices are $12, $12, and $12.
b. In this scenario, the stop loss order is not triggered, as the price does not fall below $12. The series of stop prices are $12, $12, and $12.
c. In this scenario, the stop loss order is not triggered, as the price does not fall below $12. The series of stop prices are $12, $12, $12, and $12.
d. In this scenario, the stop loss order is not triggered, as the price does not fall below $12. The series of stop prices are $12, $12, $12, $12, $12, and $12.
In all of these scenarios, the stop loss order is not triggered because the price of EFG does not fall below the stop price of $12. Therefore, the order is not triggered and there is no triggered price.
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What is a lemon law? What does it do? Do you know anybody that
either used this law or could have used this law?
A lemon law is a type of consumer protection law that helps individuals who purchase a defective or malfunctioning product, typically a car.
It requires the manufacturer or seller of the product to either repair or replace the product, or provide a refund to the buyer.
Lemon laws vary from state to state, but typically they require that the product be under a certain age or have a certain number of miles on it, and that the defect or malfunction be a significant one that affects the safety or usability of the product.
I am a question answering bot and do not have personal experiences or know anybody who has used or could have used this law.
However, there are many individuals who have benefited from lemon laws when dealing with a defective car or other product.
It is important to research the specific lemon law in your state and consult with a consumer protection attorney if you believe you have a valid claim under the law.
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1) You've been working as a personal financial planner (PFP) for the past decade. One day you hear that one of your longest running client couples have gotten a divorce. After their divorce, but before you knew about it, you'd done some work at Susan's request. Several months later Phyllis, her ex-wife, reaches out wanting you to continue to be her PFP as well. What do you do? Briefly explain your choice. a. Set up a conference call between yourself and the former couple to let them know about the conflict of interest and ask them to choose who will stay with you and who will find a new financial planner. b. Take on both as separate clients. After all, you've worked with both of them for years--and they're both fine with it. C. Explain the entire situation to the ex-wife, letting her know it would be a conflict of interest for you to work for both she and Susan. Then recommend a friend who you think would be a great CPA for her needs. d. Explain the conflict of interest to both parties and excuse yourself from working with either of them to ensure fairness. Then offer each of them the contact information for several other qualified financial planners... with the information provided above, please answer in the following in essay form:
What do you think is the ethical course of action? Why?
Respond to two other team members views
What do you think most people would do in this situation? Why?
The most ethical course of action in this situation is to explain the conflict of interest to both parties and excuse yourself from working with either of them to ensure fairness. This is the best course of action because it allows for the fairest outcome for both parties.
It ensures that each party will have their own dedicated PFP and will not be disadvantaged due to the other party's interests being taken into consideration.
Team member one: I think the most ethical course of action would be to set up a conference call between yourself and the former couple to let them know about the conflict of interest and ask them to choose who will stay with you and who will find a new financial planner.
Team member two: I think the best course of action would be to take on both as separate clients. After all, you've worked with both of them for years--and they're both fine with it.
Both of these courses of action can be considered ethical, as long as both parties are aware of the conflict of interest and are willing to be separated into separate clients.
However, it is important to note that separating into separate clients is not necessarily the fairest outcome for both parties, as one party may be more financially invested in their own interests than the other.
What do most people do in this situation? It is likely that most people would choose to set up a conference call between the former couple to let them know about the conflict of interest and ask them to choose who will stay with you and who will find a new financial planner.
This course of action would be seen as the easiest, as it requires no further research and allows for both parties to come to a decision about their future PFP together.
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We have found that a major financial risk in international business is the risk of a changing currency exchange rate. There are two basic types of currency exchange risk. One is short term Transactional currency exchange risk and the second is long term Economic, or Operational, currency exchange risk.
The Transactional risk appears when a firm enters into a transaction where a good or service is contracted and the payment is to be made in the future. An example would be buying wine from France for a cost of 100,000 euros to be delivered in three months with payment due upon receipt. If the exchange rate at the time of making the contract is $1.15 /euro the expected cost in dollars is $115,000. But, if in three months the exchange rate is $1.25/euro the realized cost will be $125,000. What can a company do to mitigate this Transaction risk?
The Economic risk/Operational risk comes from a long-term change in exchange rates that changes the economic feasibility of a business operation and the operation must be changed. My video on Foreign Direct Investments and Borrowing refer to the Japanese example, which you can use in your paper. Please include "Immunizing" Financial Statements, i.e., Income Statement and Balance Sheet as shown in my Week 8 video.
Assignment: Briefly discuss that the Bretton Woods Agreement's goal was to foster countries being economically interdependent with each other and a step toward that goal was creating a global fixed exchange rate which eliminated the exchange rate risk from international trade. Then in the 1970s the global fixed exchange rate ended and currencies floated against each other. Discuss briefly what can cause a change in exchange rates in the short term, but focus more on how a company can protect itself from Transaction risk. Then discuss briefly what can cause a long-term change in exchange rates, but focus on how a company can protect itself against that risk.
The Bretton Woods Agreement was created with the goal of fostering economic interdependence between countries by creating a global fixed exchange rate, which eliminated the risk of changing currency exchange rates in international trade.
However, in the 1970s, the global fixed exchange rate ended, and currencies began to float against each other. This introduced the risk of changing currency exchange rates, which can have a major impact on international business.
There are two basic types of currency exchange risk: Transactional currency exchange risk, which is short term, and Economic or Operational currency exchange risk, which is long term.
Transactional currency exchange risk occurs when a firm enters into a transaction where a good or service is contracted and the payment is to be made in the future. An example would be buying wine from France for a cost of 100,000 euros to be delivered in three months with payment due upon receipt.
If the exchange rate at the time of making the contract is $1.15/euro, the expected cost in dollars is $115,000. But, if in three months the exchange rate is $1.25/euro, the realized cost will be $125,000. To mitigate this risk, a company can use a variety of strategies, including hedging with forward contracts, currency options, and currency swaps.
Economic or Operational currency exchange risk comes from a long-term change in exchange rates that changes the economic feasibility of a business operation and the operation must be changed. To protect against this risk, a company can use a variety of strategies,
Including "immunizing" financial statements, i.e., income statement and balance sheet, as shown in the Week 8 video. This involves adjusting the financial statements to reflect the impact of changes in exchange rates, so that the company can better understand and manage the risk.
In conclusion, the risk of changing currency exchange rates is a major financial risk in international business. While there are a variety of factors that can cause changes in exchange rates in the short term and long term, there are also a variety of strategies that companies can use to protect themselves against these risks,
Including hedging with forward contracts, currency options, and currency swaps, and "immunizing" financial statements. By understanding and managing these risks, companies can reduce their exposure to currency exchange risk and better navigate the complexities of international business.
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Which portion would not be part of an investment portfolio? ( A ) A SAVINGS 529 PLAN ( B ) Equity investments in a company ( C ) a saving account ( D ) Commodities funds I picked ( A ) and it was wrong but when I checked 5.07 Unit Test: Saving and Investing Quiz flashcards it says ( a ) so where I go wrong. plus i got number 1 wrong to it says . ( 1 ) Which situation is a good reason to have a financial reserve that's larger than normal?
, having a large monthly car payment, ,
being able to find another job quickly if needed - I picked this one wrong again but the flash card said its this one
having mostly discretionary expenses
having an income that is fairly predictable
The portion that would not be part of an investment portfolio is : ( C ) a saving account
The situation that is a good reason to have a financial reserve that's larger than normal is: A. Having a large monthly car payment.
Which portion would not be part of an investment portfolio?1. Option C, a saving account, would not be part of an investment portfolio as it is a basic bank account that offers low interest rates and is typically used for saving money rather than investing.
The other options, A, B, and D, are all investment options that can be included in an investment portfolio
2. Having a large monthly car payment is a situation that would warrant having a financial reserve that's larger than normal. This is because the car payment is a fixed expense that must be paid every month, and in the event of a financial emergency or unexpected expense, having a larger financial reserve can provide a cushion and prevent defaulting on the car payment.
It is always a good idea to have a financial reserve that can cover at least three to six months of expenses, regardless of the specific situation.
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Question 1
Spinning the Career Wheel How will the study of accounting help you? A working knowledge of accounting is desirable for virtually every field of business. Some examples of how accounting is used in business careers include:
General management: Managers at Ford Motors, Massachusetts General Hospital, California State University— Fullerton, a McDonald’s franchise, and a Trek bike shop all need to understand accounting data in order to make wise business decisions.
Marketing: Marketing specialists at Procter & Gamble, must be sensitive to costs and benefits, which accounting helps them quantify and understand. Making a sale is meaningless unless it is a profi table sale.
Finance: Do you want to be a banker for Citicorp, an investment analyst for Goldman Sachs, or a stock broker for Merrill Lynch? These fields rely heavily on accounting knowledge to analyze financial statements. In fact, it is difficult to get a good job in a finance function without two or three courses in accounting.
Real estate: Are you interested in being a real estate broker for Prudential Real Estate? Because a third party—the bank—is almost always involved in financing a real estate transaction, brokers must understand the numbers involved: Can the buyer afford to make the payments to the bank? Does the cash flow from an industrial property justify the purchase price? What are the tax benefits of the purchase?
Required:
Indicate the accounting knowledge you will need in your workplace.
Describe any THREE (3) usages of accounting information which you are finding useful at your workplace. (15 marks)
Could you please solve this question as soon as possible?
The study of accounting can be helpful in a wide range of careers, including general management, marketing, finance, and real estate.
In general management, accounting knowledge is used to make wise business decisions based on accounting data. In marketing, accounting is used to quantify and understand costs and benefits.
In finance, accounting knowledge is used to analyze financial statements, and is essential for getting a good job in the finance field. In real estate, accounting knowledge is used to understand the numbers involved in a transaction, such as the buyer's ability to make payments and the cash flow from a property.
The accounting knowledge needed in the workplace will vary depending on the specific career field. However, some general accounting knowledge that is useful in most careers includes understanding financial statements, budgeting, cost-benefit analysis, and tax considerations.
Three specific usages of accounting information that can be useful in the workplace are:
Budgeting: Accounting information is used to create budgets and track expenses, helping businesses stay within their budget and make informed financial decisions.Cost-benefit analysis: Accounting information is used to quantify and compare the costs and benefits of different business decisions, helping businesses make the most profitable choices.Tax considerations: Accounting information is used to understand the tax implications of different business decisions, helping businesses minimize their tax liability and comply with tax laws.Learn more about accounting knowledge brainly.com/question/24081234
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Following is the unadjusted trial balance of Mohammad Abdullah’s Electric House for the year
ended December 31, 2021
1. Supplies on hand revealed at 31, December $300.
2. Prepaid insurance was paid on 1 July 2021 for 12 months.
3. Interest expense due on loan payable for last 4 months. Quarterly interest rate is 3%.
4. Salary expense per day $500, December 31 is Wednesday. Employees are paid on Monday for
the preceding 5 days work week.
5. One third of the unearned service revenue has been earned.
Requirements:
a) Journalize the adjusting entries for the year ended 31, December 2021. [5]
b) Complete the worksheet for the year ended 31, December 2021. [7]
Mohammad Abdulla's Electric House
31, December 2021
Unadjusted Trail balance
Cash $200,000
Accounts Receivable 10,000
Supply 1,000
Prepaid Insurance 12,000
Equipment 80,000
Accumulated depreciation-Equipment $5,000
Accounts payable 15,000
Unearned service revenue 6,000
Loan payable 50,000
Owner’s Capital 184,000
Owner’s Drawings 2,000
Service Revenues 55,000
Salaries expense 8,000
Cleaning expense 2,000
$315,000 $315,000
The adjusting entries for the year ended December 31, 2021 and the worksheet for the year ended 31, December 2021. are as follows:
a) Journalize the adjusting entries for the year ended 31, December 2021.
1. Supplies Expense $700 (1,000 - 300)
Supplies $700
2. Insurance Expense $6,000 (12,000 / 12 months * 6 months)
Prepaid Insurance $6,000
3. Interest Expense $600 (50,000 * 3% * 4 months / 12 months)
Interest Payable $600
4. Salaries Expense $1,500 (500 * 3 days)
Salaries Payable $1,500
5. Unearned Service Revenue $2,000 (6,000 / 3)
Service Revenues $2,000
b) Complete the worksheet for the year ended 31, December 2021.
Mohammad Abdulla's Electric House
31, December 2021
Adjusted Trial Balance
Cash $200,000
Accounts Receivable 10,000
Supply 300
Prepaid Insurance 6,000
Equipment 80,000
Accumulated depreciation-Equipment $5,000
Accounts payable 15,000
Unearned service revenue 4,000
Loan payable 50,000
Interest Payable 600
Salaries Payable 1,500
Owner’s Capital 184,000
Owner’s Drawings 2,000
Service Revenues 57,000
Salaries expense 9,500
Cleaning expense 2,000
Supplies Expense 700
Insurance Expense 6,000
Interest Expense 600
$316,100 $316,100
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The CAD/US$ spot exchange rate is 1.50 CAD/US$ and the SF/US$ is
1.20 SF/US$. What is the SF/CAD cross exchange rate?
The SF/CAD cross exchange rate is the rate of exchange between the Swiss franc (SF) and the Canadian dollar (CAD). It can be calculated using the spot exchange rates for the SF/US$ and CAD/US$. By using the direct exchange rate formula, the SF/CAD cross exchange rate is found to be 1.25 SF/CAD. This means that one SF is equivalent to 1.25 CAD.
The direct exchange rate formula is used to calculate cross exchange rate by dividing the numerator currency's spot exchange rate with the denominator currency's spot exchange rate. In this case, the SF/CAD cross exchange rate is found by dividing 1.20 SF/US$ by 1.50 CAD/US$. This yields 1.25 SF/CAD, which is the SF/CAD cross exchange rate.
Cross exchange rates are important to traders when they are dealing in multiple currencies, as they allow them to quickly convert between two currencies without having to go through a third currency. They are also important to investors because they can help to evaluate the relative values of different currencies. As such, cross exchange rates are a valuable tool in the financial markets.
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2. Choose at least 3 go-to-market channels which you considerthe most effective nowadays and describe how they are used inRetail industry. (250)
In the Retail industry, three go-to-market channels that are currently considered the most effective are e-commerce, physical retail stores, and social media.
E-commerce is an increasingly popular platform for selling retail products. Online retailers use a variety of strategies to reach customers, such as SEO optimization, targeted advertising, and digital marketing. Additionally, e-commerce stores often offer more competitive prices and more convenient shipping options than their physical counterparts.
Physical retail stores are still a popular and viable option for selling retail products. These stores typically feature well-designed displays, knowledgeable staff, and engaging in-store experiences that can help increase sales. Additionally, many retail stores offer loyalty programs and special discounts to customers to encourage repeat purchases.
Finally, social media is becoming an increasingly important part of the retail industry. Retailers use social media to build relationships with customers, increase brand awareness, and drive sales. Strategies such as influencer marketing, targeted advertising, and user-generated content can help retailers reach their target customers on social media platforms.
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please i need a different answer not copy and paste
Assignment 2
You are the Project Manager for a software development project for Tema Oil Refinery. Discuss the duties and responsibilities that you will perform on this project.
As a Project Manager for a software development project for Tema Oil Refinery, my duties and responsibilities will include managing project scope, timelines, budgets, risks, and resources, ensuring project quality, communicating with stakeholders, and facilitating team collaboration to deliver the project within the agreed parameters.
The Project Manager will oversee the project from inception to delivery, ensuring the project is delivered within budget, timeline, and scope. They will manage the project team, ensuring that each member understands their roles and responsibilities and that everyone is working collaboratively. The PM will also monitor project progress, identifying and addressing risks and issues that may arise, communicating with stakeholders, and providing regular project updates.
Additionally, they will oversee project documentation, ensuring that all deliverables meet quality standards and are delivered on time. Finally, the PM will conduct post-project reviews to evaluate the success of the project and identify areas for improvement in future projects.
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You have the opportunity to buy a single tenant, retail building in West Campus. The all in purchase price is 1,000,000. You have been able to source a five-year loan, with a 70% LTV, 5% fixed interest rate, with a 25-year amortization schedule. You pay this loan once a year at the end of the year. The NNN rent in year 1 is expected to be $82,000, and should grow at 3% a year. You expect the vacancy to be 6%. The operating expenses in year 1 are expected to $45,000 and will grow at 3% a year. Assume that you are going to sell this building at the end of the third year (on the Yr. 4 NOI) at a 7.5% exit cap with 2% associated sales costs. Assume there are no tax implications.
1. What is the Gross Potential Income in year 3?
2. What is the dollar amount for vacancy in year 2?
3. What is the NOI in year 1?
4. How much is the yearly payment for the loan?
5. What is the project's NPV assuming a 12% discount rate?
6. Based on a three-year hold, what is the project IRR?
7. Based on a three-year hold, what is the Equity Multiple?
Expert Answer
1. The Gross Potential Income in year 3 can be calculated by taking the initial NNN rent of $82,000 and increasing it by 3% each year for three years. This gives us:
Year 1: $82,000
Year 2: $82,000 x 1.03 = $84,460
Year 3: $84,460 x 1.03 = $86,994.80
So the Gross Potential Income in year 3 is $86,994.80.
2. The dollar amount for vacancy in year 2 can be calculated by taking the Gross Potential Income for year 2 ($84,460) and multiplying it by the vacancy rate of 6%. This gives us:
$84,460 x 0.06 = $5,067.60
So the dollar amount for vacancy in year 2 is $5,067.60.
3. The NOI in year 1 can be calculated by taking the Gross Potential Income for year 1 ($82,000) and subtracting the operating expenses for year 1 ($45,000) and the vacancy amount for year 1 ($82,000 x 0.06 = $4,920). This gives us:
$82,000 - $45,000 - $4,920 = $32,080
So the NOI in year 1 is $32,080.
4. The yearly payment for the loan can be calculated using the formula:
P = (L x i) / (1 - (1 + i)^-n)
Where P is the payment, L is the loan amount, i is the interest rate, and n is the number of payments. Plugging in the values from the question gives us:
P = ($1,000,000 x 0.70 x 0.05) / (1 - (1 + 0.05)^-25) = $54,622.45
So the yearly payment for the loan is $54,622.45.
5. The project's NPV can be calculated using the formula:
NPV = ∑(Ct / (1 + r)^t) - C0
Where Ct is the cash flow in year t, r is the discount rate, and C0 is the initial investment. Plugging in the values from the question gives us:
NPV = ($32,080 / (1 + 0.12)^1) + ($32,080 x 1.03 / (1 + 0.12)^2) + ($32,080 x 1.03^2 / (1 + 0.12)^3) - $1,000,000 = -$901,991.43
So the project's NPV is -$901,991.43.
6. The project IRR can be calculated using the formula:
0 = ∑(Ct / (1 + IRR)^t) - C0
Where Ct is the cash flow in year t, IRR is the internal rate of return, and C0 is the initial investment. This equation cannot be solved algebraically, so we will need to use trial and error or a financial calculator to find the IRR. Using a financial calculator, we get an IRR of -0.99%.
7. The Equity Multiple can be calculated by taking the total cash flows over the three-year hold and dividing by the initial investment. This gives us:
Equity Multiple = ($32,080 + $32,080 x 1.03 + $32,080 x 1.03^2) / $1,000,000 = 0.099
So the Equity Multiple is 0.099.
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The case presented is a unique and intricate export scenario. What are 2 po some considerations SATEP will have to examine when preparing to conduct a cost analysis?
Steps will have to examine the following considerations when preparing to conduct a cost analysis:
1. Understand the production process: This requires a thorough understanding of the manufacturing process, the availability of raw materials, the logistics system, and other factors that can affect the overall cost.
2. Estimate the production cost: The production cost will be estimated based on the availability and cost of raw materials, labor costs, and any overhead costs incurred during the production process.
3. Determine the selling price: The selling price should be calculated based on the production cost and a fair profit margin. The profit margin will vary depending on the market, demand, and competition.
4. Analyze the market and competition: It is important to analyze the market and competition to determine the level of demand, the price range, and the potential sales volume. This will help determine the production capacity and the overall cost structure.
5. Identify the target market: The target market should be identified based on the product, its features, and its price. The target market should be large enough to ensure adequate sales volume, but not so large that the competition becomes too intense.
6. Analyze the distribution system: The distribution system should be analyzed to determine the cost of distribution, the potential sales volume, and the overall profitability.
7. Identify potential risks: Potential risks should be identified, such as changes in raw material prices, fluctuations in exchange rates, changes in import/export regulations, and other factors that can affect the overall cost and profitability of the product.
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which procedure to test journal entries involves performing a walkthrough of each of the sub-processes of the period-end financial reporting process?1. identify high-risk journal entry criteria2. select and test journal entries3. test post-closing journal entries.4. obtain an understanding of the entity journal entry process
Auditors can identify possible risk areas and create suitable testing processes to manage those risks by developing an understanding of the entity journal entry process.
The sub processes of test journal entries
The procedure to test journal entries that involves performing a walkthrough of each of the sub-processes of the period-end financial reporting process is option 4: obtain an understanding of the entity journal entry process.
This procedure involves gaining an understanding of the entity's journal entry process, including how journal entries are initiated, approved, recorded, and reviewed. The walkthrough process typically includes the following steps:
- Select a sample of journal entries and trace them through the entire process, from initiation to review and approval.
- Document the controls in place at each step of the process and evaluate their design and operating effectiveness.
- Identify any deficiencies in the process or in the controls and assess the potential impact on the financial statements.
- Determine whether any additional testing is necessary based on the results of the walkthrough.
By obtaining an understanding of the entity journal entry process, auditors can identify areas of potential risk and design appropriate testing procedures to mitigate those risks.
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You have R1,000,000 in personal finances to invest over a period
of 10 years. What would you invest in? Why would you choose that
investment over another? Considering things like interest,
inflation,
If I had R1,000,000 in personal finances to invest over a period of 10 years, I would consider investing in a diversified portfolio that includes stocks, bonds, and real estate.
This would allow me to spread out my risk and potentially earn a higher return on my investment.
One reason I would choose this type of investment over another is because of the potential for higher returns. Stocks and real estate have historically provided higher returns than other types of investments, such as savings accounts or certificates of deposit.
Additionally, investing in a diversified portfolio can help protect against inflation, as the value of these investments tends to increase over time.
Another reason I would choose this type of investment is because of the potential for compound interest. By reinvesting any earnings from my investments, I can potentially earn even more money over the 10 year period. This can help me maximize my returns and potentially grow my personal finances even more.
Overall, investing in a diversified portfolio that includes stocks, bonds, and real estate can potentially provide higher returns, protect against inflation, and allow for compound interest. These are all important factors to consider when making an investment decision.
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The following transactions were completed by the company.
The company completed consulting work for a client and immediately collected $6,600 cash earned.
The company completed commission work for a client and sent a bill for $5,100 to be received within 30 days.
The company paid an assistant $1,950 cash as wages for the period.
The company collected $2,550 cash as a partial payment for the amount owed by the client in transaction b. The company paid $920 cash for this period's cleaning services.
Assets = Liabilities + Equity
Cash + Accounts Receivable = Accounts Payable + Common Stock − Dividends + Revenue − Expenses
a. + = + − + − b. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
c. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
d. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
e. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
The business got $6,600 in cash for finished consulting work, submitted a bill for $5,100 in commission work, paid $1,950 in compensation, received a partial payment of $2,550, and paid $920 for cleaning services.
According to the recorded transactions, the business was paid $6,600 in cash for rendering consultancy services to a client. The company's cash position was enhanced by the payment for the consultancy job. In addition, the business sent a client a charge for $5,100 for commission services, which will raise accounts receivable until payment is made. The company's cash balance was reduced by $1,950 because of a payment made to an assistant. Also, the business received a $2,550 partial payment from the client for the unpaid balance, raising its cash on hand. Last but not least, the business spent $920 in cash for cleaning services, reducing its cash on hand.
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5. PROPERTY, PLANT AND EQUIPMENT (Cont'd) Group Short term leasehold land RM Furniture, fittings. Plant office machinery equipment and and moulds renovations RM RM Buildings RM Motor vehicles RM 2017
Property, Plant and Equipment (PPE) is a category of assets owned by a business.
These assets typically have a useful life of more than one year and are used in the production of goods or services. Examples of PPE include buildings, land, machinery, furniture, fixtures, vehicles, and equipment.
These assets are reported on a company's balance sheet and are used to generate revenue for the business.
PPE is important to a business because it helps to increase efficiency and productivity, as well as providing a long-term source of income.
Additionally, PPE can be used as collateral for loans to obtain additional capital.
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5TH GRADE
What are your career goals?
(PLEASE HELP ME I NEED EXAMPLES)
What is the bond equivalent yield of a U.S. Treasury bill with
108 days to maturity quoted at a discount yield of 1.47 percent?
Answer in percent to four decimals.
The bond equivalent yield of the U.S. Treasury bill with 108 days to maturity quoted at a discount yield of 1.47 percent is 4.9629%.
The bond equivalent yield (BEY) is a calculation that allows investors to compare the return on a bond investment to the return on a Treasury bill investment. It is calculated by dividing the discount yield by the number of days to maturity and multiplying by 365.
To calculate the BEY for the U.S. Treasury bill in the question, we can use the following formula:
BEY = (Discount Yield / Days to Maturity) x 365
Plugging in the given values, we get:
BEY = (1.47 / 108) x 365
BEY = 4.9629%
Therefore, the bond equivalent yield of the U.S. Treasury bill with 108 days to maturity quoted at a discount yield of 1.47 percent is 4.9629%.
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