Business, 24.08.2021 04:30, chris7055

International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,650 and a cash inflow the following year of $3,600. IMC estimates that its risk-adjusted cost of capital is 15%. Currently, 1 U. S. dollar will buy 6.2 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 6%, while similar securities in Sweden are yielding 5%. a. If the interest parity holds, what is the forward exchange rate of Swedish krona per U. S. dollar? Round your answer to 2 decimal places. Do not round intermediate calculations.
Swedish krona per U. S. dollar
b. If IMC undertakes the project, what is the net present value and rate of return of the project for IMC in home currency? Round your answer to 2 decimal places. Do not round intermediate calculations.
NPV: Swedish kronas
Rate of return: %

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 08:10, alex7881

The last time he flew jet value air, juan's plane developed a fuel leak and had to make an 4) emergency landing. the time before that, his plane was grounded because of an electrical problem. juan is sure his current trip will be fraught with problems and he will once again be delayed. this is an example of the bias a) confirmation b) availability c) selective perception d) randomness

Answers: 1

continue

Business, 22.06.2019 10:00, sherylpoche23

Marco works in the marketing department of a luxury fashion brand. he is making a presentation on the success of a recent marketing campaign that included a fashion show. which slide elements can he use to include photographs and footage of the fashion show in his presentation? marco can use the: table images audio option to include photographs and the: flowcharts images video option to include footage of the fashion show.

Answers: 1

continue

Business, 22.06.2019 11:00, nathanbrockdac

Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]

Answers: 3

continue

Business, 22.06.2019 17:50, primmprincess312

Which of the following statements is true of unsought products? as compared to convenience products, unsought products are purchased more frequently. unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a life insurance policy is an example of an unsought product. unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. unsought products are those products purchased for further processing or for use in conducting a business.

Answers: 2

continue

Do you know the correct answer?

International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, I...