Calculate the new discount for the client in Germany

Assignment Help Accounting Basics
Reference no: EM133013766

Question - You launch a start-up in California, USA, offering remote consulting services worldwide. The first month you get contacted by three clients, one in Germany, one in New Zealand, and one in Great Britain. You would like to charge USD 1,000 to each of the three clients for an online consultation, but invoiced in their home currencies. Your bank offers you the following bid-ask quotes: USD/EUR 1.2-1.3, USD/NZD 0.67- 0.69, and USD/GBP 1.9-2.

a) If you accept these quotes what would be the amounts of the three invoices?

b) Your three clients would like to negotiate discounts of EUR 300, NZD 1,000 and GBP 75, respectively. What is the value of these discounts from your perspective in USD?

c) Your treasurer believes the client in Germany has greater potential for the future business than the client in Great Britain. You now would like to keep the total value of the discounts in USD the same, but renegotiate the discounts so that the client in Great Britain gets no discount for the online consultation, the client in Germany gets a larger discount, while the discount of the client in New Zealand remains unchanged. GBP/EUR is 0.5-0.7. Calculate the new discount for the client in Germany.

Reference no: EM133013766

Questions Cloud

Calculate Swifty direct materials price variance : The company actually used 1,900 pounds of the plastic to produce 15,000 dive masks. Calculate Swifty's direct materials price variance for the month
Investment management system : Describe what features are in the scope of the software and what are not in the scope of the software to be developed
What is the carrying value of the bonds on December : The proceeds from the bonds are $14,703,109. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2022
Compute the fair value of the contract : Assuming the risk-free rates are 3% (simple p.a) in USD and 4% (simple p.a) in EUR, Compute the fair value of the contract
Calculate the new discount for the client in Germany : You would like to charge USD 1,000 to each of the three clients for an online consultation, Calculate the new discount for the client in Germany
What was the firm abnormal return for the day : If the company made a dividend announcement on that day, what was the firm's abnormal return for the day
How a hr department can minimize disparate treatment : Compare and contrast discrimination that occurs by both disparate treatment and disparate impact. Explain how a HR department can minimize disparate treatment a
Changes in hrm operations through technology : How do you identify and then make changes in HRM operations through technology?
Prepare journal entries on the books of ABC Corp : ABC Corp., a U.S. Company, imports and exports various items. The company uses a periodic inventory system. Prepare journal entries on the books of ABC Corp

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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