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Problem - In July 2017 Foxconn announced it would build a factory in Wisconsin, United States to produce flat-screen displays. It is now considering whether it should also move some or all of its iPhone manufacturing to the US. You need to write a report that will provide an answer to the following questions:
(1) Should Foxconn move some or all of its iPhone manufacture to the United States? Consider the costs and benefits of moving manufacturing from China to the US. These will only be estimates of the costs and benefits for Foxconn/Apple of doing this. You can rely on the figures you have calculated as the basis of this report.
(2) What other qualitative factors are going to be important in making this decision? You should also consider what changes are being made in manufacturing and what implications this will have on future manufacturing costs for iPhones.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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Term Structure of Interest Rates
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Create a cost-benefit analysis to evaluate the project
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Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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