--%>
Assignment Help - homework help

Fin 335 International finance

1. The exchange rate is 1.22 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1,500 Swiss francs? [$1,229.51]

2. You are planning an extended trip to Hong Kong. You have located some housing that you can lease for 9,400 Hong Kong dollars per month. What is the cost per month in U.S. dollars if the exchange rate is HK$1 = $.1279? [$1,202.26]

3. Your German friend has decided to come and visit you in the U.S. You estimate the cost of her trip at $4,800. What is the cost to her in Euros if the U.S. dollar equivalent of the euro 1.58? [€3,037.98]

 4. Currently, you can purchase either 106 Canadian dollars or 123 Japanese yen for $100. What is the C$/¥ cross rate?  [C$/¥ 0.8618]

5. Breakeven Point Analysis: TeeOff Corp produces golf umbrellas for several sports retail outlets. Their fixed costs are $600,000. The sell the umbrellas for $9.25 (MSRP). The variable costs per umbrella (labor and material) is $4.25. How many umbrellas must they sell to breakeven? (120,000)

QBEP = Fixed Costs / (P - VC)

 6. Clemson Software is considering a new project whose data are shown below.  The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years.  Revenues and other operating costs are expected to be constant over the project's 3-year life.  What is the project's Year 1 cash flow? ($30,333)

 

Equipment cost (depreciable basis)                                        $65,000

Straight-line depreciation rate                                              33.333%

Sales revenues, each year                                                       $60,000

Operating costs (excl. depreciation)                                      $25,000

Tax rate                                                                                     35.0%

 

7. As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data.  What is the Year 1 cash flow? ($5,950)

 

Sales revenues                                                            $13,000

Depreciation                                                                 $4,000

Other operating costs                                                   $6,000

Tax rate                                                                         35.0%

 

8. Your company, CSUS Inc., is considering a new project whose data are shown below.  The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4.  Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life.  What is the project's Year 4 cash flow? ($13,090)

 

Equipment cost (depreciable basis)                                        $70,000

Sales revenues, each year                                                       $42,500

Operating costs (excl. depreciation)                                      $25,000

Tax rate                                                                                     35.0%

   Related Questions in Finance Basics

  • Q : What is an Investment Management

    Investment Management: It has two general definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, a financial advisor or services company gives inve

    		•
  • Q : Define Schedule Schedule : The

    Schedule: The explanation of an appropriation in the Budget Bill or Act, exhibiting its distribution to each of the programs, categories, or therefore projects. OR The supplemen

    		•
  • Q : Rate of inflation Normal 0 false false

    Normal 0 false false

    		•
  • Q : Effect of merger activity in the

    How has the merger activity in the past decade influenced the concentration of assets in the banking industry? Over the last decade, the number of commercial banks declined through twenty-one percent and the averag

    		•
  • Q : Cyclically adjusted budget Normal 0

    Normal 0 false false

  • Q : Determine the level of real output in

    Normal 0 false false

  • Q : Describe factors which common

    Describe some factors which common stockholders consider while deciding how much, if any, cash dividends they want from the corporation wherein they have invested? Common stockholders would assume the company's investment opportunity, their requ

    		•
  • Q : Explain primary assumption behind

    Explain primary assumption behind the experience approach to forecasting?The experience approach to forecasting is depending on the supposition that things will happen a certain way in the future since they happened that way in the past. For exa

    		•
  • Q : Supply and demand 1. Albert Jones went

    1. Albert Jones went to his local department store to purchase a pair of Levi s. He thought that the style of Levi that he wanted would sell for about $30 a pair. When he got to the store, he saw a sign which said, Levi s, all styles, $18 a pair. Albert bought three pairs of Levi s. The behavior of

    		•
  • Q : What is a Provision Provision : The

    Provision: The language in a bill or act which imposes necessities or constraints on actions or expenditures of the state. The provisions are frequently employed to constrain the expenditure of appropriations however it might also be employed to give

    		•