QUESTION THREEa. 'We all know maths; GH¢4.20-GH¢5 is 19% depreciation, not 6%- an MP to government."The thing was 4.20 (cedis). Now, in 18 months since we came, it is 5 cedis. At someplaces, it is even ¢5.20! What is the government official talking about? If you look well,80 pesewas has come to join it. Simple mathematics is 80p over [divided by] GH¢4.20ptimes [multiplied by] 100 (%), it gives you 19%! So how can he say it is 6%?"Required: Comment on the analysis and magnitude of the depreciation of the cedi inthe story above.b. AngloGold Ashanti is a global gold producer headquartered in Johannesburg, South Africawith significant operations in Ghana.Identify and discuss the types of exchange rate exposures that AngloGold Ashanti might face.Use examples to illustrate how AngloGold Ashanti might face any of the exchange rateexposures you identify.

Part A: Depreciation of the CediThe MP argues that the cedi has depreciated by 19%, which is higher…

Answered: QUESTION THREE a. 'We all know maths;…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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the answer to this question is Q9.4= a=$6209, b=$3855, c=21%, d=$3870.40, we just need to find how we get that answer for this question, please help NO EXCEL
the answer to this question is Q4.25= $8756 but we just need to find how we get that answer for these questions, please help NO EXCEL
Use the data below for problems 6 to 10. YearProj YProj Z 0($420,000)($420,000) 1400,000182,000 2185,000156,000 3—146,000 4—175,000 The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have an 11% cost of capital. 6. What is each project’s initial NPV without replication? 7. What is each project’s equivalent annual annuity? 8. Now apply the replacement chain approach to determine the shorter projects’ extended NPV. Which project should be chosen? 9. Now assume that the cost to replicate Project Y in 2 years will increase to $600,000 because of inflationary pressures. How should the analysis be handled now, and which project should be chosen?
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You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.5 million today and $5.5 million in one year. The government will pay you $21.7 million in one year upon the building's completion. Suppose the interest rate is 10.3%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? www. a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) O A. The firm can borrow $19.67 million today and pay it back with 10.3% interest using the $21.7 million it will receive from the government. B. The firm can borrow $15.0 million today and pay it back with 10.3% interest using the $21.7 million it will receive from the government. O C. The firm can borrow $15.0 million today and pay it back with 10.3% interest using the $19.67 million it will…
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the data below for problems 6 to 10. Year. Proj Y. Proj Z 0 ($420,000) ($420,000) 1 400,000 182,000 2 185,000 156,000 3 — 146,000 4 — 175,000 The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have an 11% cost of capital. 6. What is each project’s initial NPV without replication? 7. What is each project’s equivalent annual annuity? 8. Now apply the replacement chain approach to determine the shorter projects’ extended NPV. Which project should be chosen? 9. Now assume that the cost to replicate Project Y in 2 years will increase to $600,000 because of inflationary pressures. How should the analysis be handled now, and which project should be chosen?
Consider a project with the following cash flows: Time 0 1 2 3 4 5 CF -$5,000 $5,000 $4,000 $2,000 $1,000 -$6,000 Please round your answer to two decimal places. (e.g. 12345.67 for $12,345.67; 12.34 for 12.34%) a) What does excel (or your calculator) say the IRR is?
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Can you correct my written formula to get a total of $90,691.36 please, the answer I got is italicized and underlined below. 1. Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 2. Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52

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