Questions from Financial Markets

Q: A U.S. based multinational corporation (MNC) sold

A U.S. based multinational corporation (MNC) sold some equipment to a British firm today and will receive £1,000,000 from the British firm one month from today. Today’s spot rate is $1.12/£. The MNC i...

Q: What information sources are used to develop estimates for a project's

What information sources are used to develop estimates for a project's a. initial outlays? b. operating life? c. salvage value?

Q: Why might there be tax implications when an asset is sold at

Why might there be tax implications when an asset is sold at the termination of a capital budgeting project?

Q: Explain the process to estimating cash flows for a revenue-enhancing

Explain the process to estimating cash flows for a revenue-enhancing project.

Q: Explain the process to estimating cash flows for a cost-saving

Explain the process to estimating cash flows for a cost-saving project.

Q: Explain the process to estimating a bid price by estimating zero-

Explain the process to estimating a bid price by estimating zero-NPV cash flow needs.

Q: What risks does a company face due to changing exchange rates?

What risks does a company face due to changing exchange rates?

Q: What are the four requirements that need to be determined when entering

What are the four requirements that need to be determined when entering into a forward contract?

Q: Why is hedging similar to buying insurance?

Why is hedging similar to buying insurance?

Q: 1. What is a series of equal payments (or receipts

1. What is a series of equal payments (or receipts) that occur over a number of time periods called? a. Annuity b. Reverse annuity c. Simple interest problem d. Rule of 72 example 2. What is a s...