Already have an account? Get multiple benefits of using own account!
Login in your account..!
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 1: (a) Explain in details the 5 main E-Business Models. (b) Explain the different factors to be taken into consideration in order to manage an E-Business infrastruc
Employees are an important asset in any organization. Therefore, it is important to ensure that employee behavior is effectively managed to ensure successful operations. Explain th
WHAT IS THE PROCEDURE INVOLVED IN PLANNING AND DEVELOPMENT OF MIS
write a detail note on the planning and development of management and information system
what are the challenges and opportunities of mis
CATEGORISATION OF INFORMATION SERVICES IN COMPUTER ENVIRONMENT Modern libraries and information centres provide a variety of documentation and information services to support
Ask question #Minimum 100 words acceptedlist and explain inner and outer forms of a catalogue#
identify stages and level of decision making
BENEFITS OF MANAGEMENT INFORMATION SYSTEM An efficient Management Information System has many advantages. Some of them are given below: Management Information System qu
If hais m''ont in thés site you c''en sent payements to 346 Neely town rdv Dekalb,Ans,39328
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!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd