What is the npv in dollars

Assignment Help Financial Accounting
Reference no: EM133022206

Question - Delta Company, a U.S. MNC, is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR103. The annual cash flows over the five year economic life of the project in ZAR are estimated to be 29, 34, 39, 46, and 53. The parent firm's cost of capital in dollars is 7.7 percent. Long-run inflation is forecasted to be 1.9 percent per annum in the U.S. and 9 percent in South Africa. The current spot foreign exchange rate is USD/ZAR = 14.35 (Rand/$). What is the NPV in dollars if the actual pattern of USD/ZAR exchange rates is: S(0) = 14.35, S(1) = 14.57, S(2) = 14.8, S(3) = 15.04, S(4) = 14.51, and S(5) = 15.84?

Reference no: EM133022206

Questions Cloud

Calculate the npv of the investment : Assuming a required rate of return of 8 percent for Abmad Sajadi, calculate the NPV of the investment. Should Ahmad invest
Calculate the total cost for each individual alternate order : Calculate the total cost for each individual alternate order quantities, including the current policy
How much is your monthly payment : They will charge you monthly and the loan term is 5 years. The dealership is charging you $22,801 for the car that you want. How much is your monthly payment
Determine the equivalent unit cost : Using the weighted average cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost
What is the npv in dollars : he current spot foreign exchange rate is USD/ZAR = 14.35 (Rand/$). What is the NPV in dollars if the actual pattern of USD/ZAR exchange rates is: S(0) = 14.35
How long will it be until you have : You can afford monthly deposits of $230 into an account that pays 3.6% compounded monthly. How long will it be until you have $8,700 to buy a? boat
Prepare the bank reconciliation : A customers note for $920 was collected by the bank. A collection fee of $20 was deducted by the bank. Prepare the bank reconciliation
How much should his guitars sell for : Problem - Helmer produces guitars which costs him $157 in variable costs per unit to produce. How much should his guitars sell for
At what amount should the land be recorded : On the same day, another piece of land on the same block sold for $272,000. Under the cost concept, at what amount should the land be recorded

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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