Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest. The interest rate is 8 percent per annum in the United States and 7 percent per annum in Germany. Currently, the spot exchange rate is $1.20 per Euro and the one year forward exchange rate is $1.18 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should he/she invest to maximize the return?. What current spot exchange rate would the concept of the covered interest rate parity imply in this case?

## What is the total value of darlene assetsDarlene Wilson has the following financial amounts: checking account balance $1,050, What is the total value of Darlene's assets? |

## What is the present value of your savings accountSuppose you invest $ 2,026 today to start a business. In 4 years you hope to sell this company for $ 8,865. What would be your annualized rate of return? Assume that, starting next year, you put $ 662 into a savings account that pays 9 % interest eve.. |

## Project that will generate perpetual after-tax cash flowsA firm is considering a project that will generate perpetual after-tax cash flows of $24,500 per year beginning next year. |

## What is standard deviation rounded to nearest whole numberYou are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15.. |

## What are the annual carrying cost-annual ordering costWhat are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? |

## Savings using an ordinary annuity and an annuity dueX company purchased equipment providing an annual savings of $20000 over 10 years. Assuming an annual discount rate of 10%, what is the present value of the savings using an ordinary annuity and an annuity due? |

## Market interest rates are expected to fall in the futureEverything else held constant, if market interest rates are expected to fall in the future, |

## Ricardian model benefit the import and export of productsHow does the Ricardian Model benefit the import and export of products from given countries? |

## Given the information regarding life cycle costsList the methods one can deal with escalation. Prioritize these with best method listed first and the weakest method last. Does an organization have more control over inflation or escalation? Why? Given the information regarding life cycle costs, how.. |

## Compounded daily on savings accountsBucher Credit Bank is offering 7 percent compounded daily on its savings accounts. How much will you have in the account in 6 years? |

## All sources of long-term financing to the firmThe cost of capital represents the weighted average cost of all sources of long-term financing to the firm, |

## Simple interest on its investment accountsFirst Simple Bank pays 9.1 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 11.. |

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