--%>
Assignment Help - homework help

Fin 335 International finance

1. The exchange rate is 1.22 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1,500 Swiss francs? [$1,229.51]

2. You are planning an extended trip to Hong Kong. You have located some housing that you can lease for 9,400 Hong Kong dollars per month. What is the cost per month in U.S. dollars if the exchange rate is HK$1 = $.1279? [$1,202.26]

3. Your German friend has decided to come and visit you in the U.S. You estimate the cost of her trip at $4,800. What is the cost to her in Euros if the U.S. dollar equivalent of the euro 1.58? [€3,037.98]

 4. Currently, you can purchase either 106 Canadian dollars or 123 Japanese yen for $100. What is the C$/¥ cross rate?  [C$/¥ 0.8618]

5. Breakeven Point Analysis: TeeOff Corp produces golf umbrellas for several sports retail outlets. Their fixed costs are $600,000. The sell the umbrellas for $9.25 (MSRP). The variable costs per umbrella (labor and material) is $4.25. How many umbrellas must they sell to breakeven? (120,000)

QBEP = Fixed Costs / (P - VC)

 6. Clemson Software is considering a new project whose data are shown below.  The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years.  Revenues and other operating costs are expected to be constant over the project's 3-year life.  What is the project's Year 1 cash flow? ($30,333)

 

Equipment cost (depreciable basis)                                        $65,000

Straight-line depreciation rate                                              33.333%

Sales revenues, each year                                                       $60,000

Operating costs (excl. depreciation)                                      $25,000

Tax rate                                                                                     35.0%

 

7. As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data.  What is the Year 1 cash flow? ($5,950)

 

Sales revenues                                                            $13,000

Depreciation                                                                 $4,000

Other operating costs                                                   $6,000

Tax rate                                                                         35.0%

 

8. Your company, CSUS Inc., is considering a new project whose data are shown below.  The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4.  Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life.  What is the project's Year 4 cash flow? ($13,090)

 

Equipment cost (depreciable basis)                                        $70,000

Sales revenues, each year                                                       $42,500

Operating costs (excl. depreciation)                                      $25,000

Tax rate                                                                                     35.0%

   Related Questions in Finance Basics

  • Q : Describe Form 9 Form 9 : It is the

    Form 9: It is the request by department for space planning services (example, new or extra space lease extensions, or renewals in non-institutional) and also evaluated by the Department of Finance.

    		•
  • Q : Define Special Funds Special Funds :

    Special Funds: For legal base budgeting purposes, funds produced by statute, or administratively per Government Code Section 13306, employed to budget and account for taxes, licenses, and fees which are restricted by law for specific activities of the

    		•
  • Q : Influence of working capital in the

    How and why does working capital influence the incremental cash flow estimation for a proposed large capital budgeting project? Describe. Several large projects need additional working capital. This investment in additional working capital bec

    		•
  • Q : Describe the importance of additional

    Normal 0 false false

  • Q : Why do focusing on cash flows rather

    Why do we focus on cash flows rather than profits while evaluating proposed capital budgeting projects? We targeted on cash flows instead of profits while evaluating proposed capital budgeting projects since it is cash flow that changes the valu

    		•
  • Q : Advantages and disadvantages of working

    Describe the advantages and disadvantages of the aggressive working capital financing approach? An aggressive working capital financing approach generally results in a lower cost of funds for a firm however a higher level of risk.

    		•
  • Q : Assignments i want to write final state

    i want to write final state report. My state is Texas.

    		•
  • Q : What is Reverted Appropriation Reverted

    Reverted Appropriation: An appropriation which is reverted to its fund source after the date its liquidation period has terminated.

    		•
  • Q : Purchasing power parity of US and

    Under what condition would the U.S. dollar and the Canadian dollar said to be have achieved purchasing power parity? The U.S. dollar and the Canadian dollar would be assumed to have achieved purchasing power parity while the exchange rate reflec

    		•
  • Q : Describe the sales forecasting procedure

    Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

    		•