Ssume that interest rate parity exists. you expect that the one-year nominal interest rate in the u. s. is 7%, while the one-year nominal interest rate in australia is 11%. the spot rate of the australian dollar is $.60. you will need 10 million australian dollars in one year. today, you purchase a one-year forward contract in australian dollars. how many u. s. dollars will you need in one year to fulfill your forward contract? a. $5,784,000 b. $5,387,000 c. $6,184,000 d. $8,356,000

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.