What is the total present worth of the contract

Assignment Help Management Theories

Reference no: EM131374728

Inflation in Russistan currently averages 40% per month. It is expected to diminish to 20% per month following the presidential elections 12 months from now. The Russistan Oil Company (ROC) has just signed an agreement with the Global Petroleum Group for the sale of future shipments.

The ROC will receive 500 million rubles per month over the next two years, and also 500 million rubles per month indexed to inflation (i.e., real rubles). If the ROC has a real ALARR of 1.5% per month, what is the total present worth of this contract?

Reference no: EM131374728

Questions Cloud

Venture capitalist ben evans once said : Venture capitalist Ben Evans once said, "mobile is eating the world." Give examples of how mobile has built billion dollar industries that wouldn't exist without handheld computing power. How should today's manager be thinking about mobile as an ..

What can be done to minimize the possible unethical impact : M4D2 BUS- How does this affect decision making? Are these types of conflicts of interest avoidable? If so, how? If not, what can be done to minimize the possible unethical impact?

Evaluating bias in research : Identify the first step in the student's guide to research. Define the first step of research in your own words. Identify the major assumptions and bias of the drug industry that underlie drug research.

Discuss dells approach to building his brand : Michael Dell began building and selling computers from his dorm room at age 19. He dropped out of the University of Texas when his sales hit $60 million and has never looked back. Dell is said to be the fifteenth richest man in America, and the yo..

What is the total present worth of the contract : The ROC will receive 500 million rubles per month over the next two years, and also 500 million rubles per month indexed to inflation. If the ROC has a real ALARR of 1.5% per month, what is the total present worth of this contract?

Discuss substantive ways : Using a developing country as an example to illustrate your points, discuss substantive ways in which armed conflict can contribute to or distract a developing economy and infrastructure. In addition, analyzespecific reasons why developed nations,..

What is present worth of his remaining income from trust : If the first payment is a year from now and a total of 10 payments are to be made, what is the present worth of his remaining income from the trust?

Description of a historical even : Read the following description of a historical even and design an appropriate research design based on what is provided to you in the scenario:

Prepare a document require to engage potential investors : Develop the detailed documents required to engage potential investors in their entrepreneurial ventures, incorporating them into their business plans.

User Account

All Pages