What rate of return would be required for a project

Assignment Help Microeconomics
Reference no: EM131506692

Question: A company requires a 26% internal rate of return (before taxes) in U.S. dollars on project investments in foreign countries.

a. If the currency of Country A is projected to average an 8% annual devaluation relative to the dollar, what rate of return (in terms of the currency there) would be required for a project?

b. If the dollar is projected to devaluate 6% annually relative to the currency of Country B, what rate of return (in terms of the currency there) would be required for a project?

Reference no: EM131506692

Questions Cloud

Obtain the medical histories of patient : As a healthcare professional, you are attempting to obtain the medical histories of your patient, Lisa Sanchez.
Process for addressing problem : 1. How would you act in this scenario? 2. How could you change the process for addressing this problem?
Nominal interest rate as return on your investment : What is your selling price if you earned 6% nominal interest rate as return on your investment?
How effective was the organization of the article : select one of the writers from the articles and stories below and evaluate the writer's viewpoint on the subject. How effective was the organization of article
What rate of return would be required for a project : A company requires a 26% internal rate of return (before taxes) in U.S. dollars on project investments in foreign countries.
What is the most expensive car you can afford to buy : what is the most expensive car you can afford to buy?
Components included in a standpipe system : List and describe the components included in a standpipe system. What type of standpipe system would you install in a 40-story residential high-rise.
Explain how the fire pump operates : Select one type of fire pump, and explain how the fire pump operates. Details in the essay shall include the water supply, operation, pump driver, controller.
How do they reinforce the mood of the scene : Choose a scene from the movie you watched this week and talk about the sound elements you identify. How do they reinforce the mood of the scene

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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