Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
MJW Corporation (US) is a manufacturer of electronics. During the last five years, the cost of raw materials and labor, have continued to rise in the firm's US manufacturing facility. As a result, the CEO of MJW Corp. is considering establishing a new manufacturing subsidiary overseas to take advantage of lower production costs elsewhere. Investment advisors to the CEO have suggested Mexico and Thailand as two possible locations.Below is the summary of the subsidiary's expected pre-tax cash flows for the first five years in each location. Even though most operating cash flows will be in pesos or bahts, the company anticipates some US dollar denominated expenses. ETC Mexico In Millions??2012??2013??2014??2015??2016MP cash inflows???7500??11000??12500??13800MP cash outflows?18000??1500?? 1900?? 1700?? 1600US $ cash outflows???? 200?? 150?? 125?? 75 ETC Thailand In Millions??2012??2013??2014??2015??2016TB cash inflows????28000??24500??26000??28800TB cash outflows?60000?? 2000?? 2200?? 1900?? 3000US $ cash outflows??? 125?? 175?? 200?? none Additional Information:Exchange rates for 2012 are:?1 Mexican Peso(MP)=US$.08 (i.e $1=12.5 MP)1 Thai baht (TB)= US$.032 (or $1=31.25TB).It is expected that the Mexican Peso will strengthen against the US dollar at 4 percent per year. and the Thai baht will weaken at the rate of 3 percent per year against the dollar. MJW Corporation's weighted average cost of capital for both projects is 6 percent. Mexican income tax rates are 15%, whereas income tax rates in Thailand are 10%. No monies will be repatriated back to the US. . Determine the net present value of both projects. Round PV factor to 4 decimal places.. If you were MJW Corporation's investment advisor, which location would you choose for the new subsidiary? Why?
All-inclusive and current operating performance concepts of income represent opposing views regarding the inclusion of items to be reported in earnings on the income statement.
In the case of a privately held company, what should be the focus of management, to meet all the reporting guidelines set by the FASB ASC, or to maximize the profits of the company?
You are an internal auditor of a small rural bank with 3 branches. The bank's customers are mainly farmers. The bank is a publicly traded corporation (OTC) and qualifies under the Sarbanes-Oxley Act of 2002 (SOX) regarding financial reporting requ..
How much income must Dave report for the tax year and what is the character of the income? What is Dave's basis in his partnership interest at the end of the tax year?
Twohig Company leased a piece of equipment from Wells, Corp. on January 1, 2011 for $300,000. The lease term is for seven years and the life of the asset is 10 years.
let's talk about the accounting issues related to valuation of accounts receivable and why they are important. Please include the methods for estimating the allowance for bad debt expense in your discussion. How is the allowance account related to..
The actual manufacturing overhead cost incurred was $54,000. The manufacturing overhead cost applied to Work in Process was $58,000. The cost of goods manufactured for September was?
Provide and show all answers and step by step work to obtain the answer, not skipping any steps. Show all equations, acronyms (ie ETC, ACWP, etc), and if applicable, a description of how you came to the answer.
No Income Gainedfrom Revaluations- You are required to work as a research team intending to present your findings in a suitable written format
Bach's Clothing Store is considering a new product line: umbrellas and rain gear. The new product line would require an investment of $20,000 in equipment and fixtures and $40,000 in working capital. Store managers expect the following pattern of ..
What financial factors should management consider when deciding whether to sell a product at the split off point or process it further?
How common are dividend distributions in today's economic climate, particularly since the economic downturn of 2008 and 2009? Please comment on whether dividend distributions are concentrated in the companies that are publicly traded or whether cl..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd