Payback period rule and average accounting return

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Reference no: EM131967033

1. The interest rate in Great Britain is 5.0 percent per year and the interest rate in the USA is 6.0 percent. If the spot exchange rate is 1.3 dollars per pound, what is the price of a 11 month forward contract to buy the British pound?

2. List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return, Internal Rate of Return, and Profitability Index.

3. Analyze how capital budgeting impacts location in both the short and long run.

Reference no: EM131967033

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