Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Brooks Co. (a U.S. firm) considers a project in which it will have computer software developed. It would sell the software to Razon Co., an Australian company, and would receive payment of 10 million Australian dollars (A$) at the end of 1 year. To obtain the software, Brooks would have to pay a local software producer $4 million today. Brooks Co. might also receive an order for the same software from Zug Co. in Australia. It would receive A$4 million at the end of this year if it receives this order, and it would not incur any additional costs because it is the same software that would be created for Razon Co.
The spot rate of the Australian dollar is $.50, and the spot rate is expected to depreciate by 8 percent over the next year. The 1-year forward rate of the Australian dollar is $.47. If Brooks decides to pursue this project (have the software developed), it would hedge the expected receivables due to the order from Razon Co. with a 1-year forward contract, but it would not hedge the order from Zug Co. Brooks would require a 24 percent rate of return in order to accept the project.
a. Determine the net present value of this project under the conditions that Brooks receives the order from Zug and from Razon and that Brooks receives payments from these orders in 1 year.
b. Brooks recognizes there are some country risk conditions that could cause Razon Co. to go bankrupt. Determine the net present value of this project under the conditions that Brooks receives both orders but that Razon goes bankrupt and defaults on its payment to Brooks.
NOTE: Instead of asking the user to input the coefficients, create a 3x3 matrix containing the data with each row corresponding to a problem. Then use a loop to execute the problem 3 times, using the appropriate row each time.
A manufacturer claims that the life span of its tires is 51,000 miles. Assuming the manufacturer's claim is correct, what is the probability the mean of the sample is 50767 miles or less?
If 9 loads are chosen at random for a weight check, find the probability that the mean weight of those loads is less than 47.6 tons. Assume that the variable is normally distributed.
Scenario: Regression equations are created by modeling data, such as the following: Sales = (Cost Per Item - Number of Items) - Constant Charges
What proportion of the variability in steel shipments for motor vehicles is described by regression equation?
Use α = 0.10 and assume that the population is normally distributed. Write a paragraph that interprets the test's decision.
What are the dependent and independent variables in this problem? Explain. Use the least-squares method to find the regression coefficients (show workings). State the simple linear regression equation.
A consumer purchases 12 frozen chickens. What is the probability that the consumer will have more than 6 contaminated chickens.
an elevator in a building starts with 6 people and stops at 8 floors. assuming that all permutations of the passengers
A particle is in the ground state of a box with sides x = +/- a. Very suddenly the sides of the box are moved to x = +/- b(b >a). What is the probability that the particle will be found in the ground state for the new potential? What is the probab..
assume that a procedure yields a binomial distribution with a trial repeated n times. use a binomial probabilities
The following sample data were obtained from three populations where the variances were not equal, and you wish to compare the populations.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd