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!
XYZ Electronics has an alternative method of producing the modified bearings. It has an opportunity to build a small manufacturing facility in a foreign country and build the parts from scratch. Because of lower material and labor costs, the cost to manufacture each bearing from scratch is $50, but annual fixed costs are $25k. The cost for setting up this production method is $100k, all of which is for plant & equipment. It still needs $5k worth of inventory that is recovered at the end of the project. The manufacturing facility and its equipment can be sold for $60,000 in 3 years' time, which is mostly the value of the land. The completed units will have to be shipped home (insured) at a flat rate cost of $5/unit. The quality of the product is expected to be consistent with the domestically produced units and can be sold for $795/unit. The tax rate in the foreign country is 15%. There is no tax treaty so cash flows that are repatriated are subject to the domestic tax rate also. (The foreign country does not have a tax credit for capital investments.) The salvage value quantity is exempt from repatriation taxes. The foreign country also uses straight-line depreciation over 3 years. The initial investment cost is called in current dollars, but future cash flows are subject to exchange rate risk. This risk is reflected in the needed rate of return by adding 3% to the domestic needed rate of return.1. Search the economic breakeven quantity of demand. (Where NPV equals zero.)
2. Assume that futures contracts suddenly become available so that exchange rate risk can be eliminated. Find the break-even quantity demanded under this scenario.
3. Is it better to produce domestically or in the foreign country? Describe briefly.
4. In this example, the existence of futures contracts would be classified as what?
5. Declare some of the assumptions of capital budgeting, especially in the context of international financial management.
Question: (a) The Systems Development Life Cycle is the oldest process for building information systems and is still used today for medium and large complex systems projec
Indexing Indexing is the process of allocating index terms or keys to a record or document represented in an Information Retrieval System. Historically, the term indexing was
describe Maintenance of MIS
What are the different network perspectives in innovative research? Why do authors differ in how they define innovation networks? How can networks influence actions of its members?
Function Decomposition Diagram
SELECTION TOOLS AND THEIR IMPORTANCE: In order to do this job well, it is invaluable to have a good background knowledge of production agencies that bring out print and non-pr
what is transiction prcessing system
Question: a) A wide spectrum of mobile/branchless banking models is evolving. These models differ primarily on the question that who will establish the relationship with the e
the complexity of the environment and the disruptive nature of humans justifies the role of the systems approach.react to this statement citng examples
QUESTION 1 In the case where information has leaked or a third party has released information or disinformation detrimental to the organisation, then a reactive process must oc
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