When an auto company owned entirely by German citizens opens a new factory in USA, this is considered a foreign direct investment Select one: True False
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- Mf2. If you are a US Investor buying currency call option to buy EUR against US, is it true that you are indirectly buying currency put option contract for US. If it is, how does it work?Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.1 hours per toy at $6.80 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.29 per micron. 35,250 of these microns were still in inventory at the end of the month. Direct labor. 6,000 direct labor-hours were worked at a cost of $43,200. Required: 1. Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity…Commercial Invoice: Prepare a commercial invoice with a total value exceeding $4000 USD FOR FOLLOWING ITEMS Item 1: Full Description: Electric Motors Tariff Classification: 8501.10.10 Duty Rate: 5.5% Tariff Treatment: MFN Country: china Item 2: Description: Parts for Transmission Shafts Tariff Classification: 8483.40.00 Duty Rate: 6% (MFN) Origin: US Item 3: Full Description: Computer Servers Tariff Classification: 8471.41.00 Duty Rate: 0.0% (US Free Trade Agreement) Tariff Treatment. US Origin Country of Origin: USA Item 4: Full Description: Electric Lighting Fixtures Tariff Classification: 9405.10.10 Duty Rate: 6.5% Tariff Treatment: MFN Country of Origin: Mexico 2. Import Regulations:.
- ackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: Date Spot Rate Forward Rate to Jan.15 December 16, 2021 $ 0.00082 $ 0.00089 December 31, 2021 0.00080 0.00083 January 15, 2022 0.00086 0.00086 Assuming a forward contract was entered into on December 16 as a fair value hedge, what would be the net foreign exchange gain or loss on Jackson's 2022 related to this transaction? Jackson amortizes forward points using the straight-line method. Ignore present values.Lakonishok Equipment has an investment opportunity in Europe. The project costs €14,750,000 and is expected to produce cash flows of €3,350,000 in Year 1, €4,350,00 in Year 2, and €4,750,000 in Year 3. The current spot exchange rate is $.83/€ and the current risk-free rate in the United States is 3 percent, compared to that in euroland of 2.2 percent. The appropriate discount rate for the project is estimated to be 10 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the en of three years for an estimated €9,250,000. What is the NPV of the project in U.S. dollars? (Do not round intermediate calculations and enter your answer in dollars, not in millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) NPVOther than high energy consumption, what are some of the limitations of mining associated with Bitcoin?
- If the following explanation (or expression) is correct, please indicate "True". Or, if the following explana expression) is wrong, please indicate "False".Another answer. A fixed capital investment of 12,000,000 pesos is required for a production plant and an estimated working capital of 3,000,000 pesos. Annual depreciation is estimated to be 15% of the capital investment. Determine the rate of return on the total investment and the length of time to recover it if the annual profit is 2,800,000 pesos. Show Complete solution on a clear paper.If you have the following two investments: The first investment will produce $100,000 after two years from now, and the second investment will produce $110,000 three years from now. Which investment will be more economically viable?
- Suppose you have a 1,200,000 US dollar payable coming due in June and that the spot today is .98 US/CDN. You get a strike of .98 US and you are dealing with the PHLX. Suppose you are deciding whether or not to hedge out the foreign exchange risk. The size of the Canadian dollar contract on the PHLX is 50,000 Canadian dollars per contract. The option price is listed as 1.00 for the June put on Canadian dollars and .90 on the June call. Suppose you expect the US/CDN to be .97 on the last day of the option (the expiry date). This also happens to be the day you need to cover your payable. How much does it cost you to set up the hedge with brokerage cost set to zero? (In CANADIAN dollars approximately.) O A. 12,000 O B. 12,887 O C. 12,755 O D. 12,500True or false Coupon rate is used to calculate the coupon payment, and YTM is a discount rate, which will make the present value of future cash flow equals the market price, used to measure the real rate of return. Some expenditures are fixed in nominal terms and therefore increase in real terms when the inflation is serious. The preference stockholders can receive dividends at a fixed rate out of profits before the common shareholders.Question 5 Foreign Direct Investment (FDI) occurs when a firm invests directly in facilities to produce or market goods or services in a foreign country. Discuss the characteristics of FDI