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FIN 335 problemds




Question;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?;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?;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?;4. Currently;you can purchase either 106 Canadian dollars or 123 Japanese yen for $100. What;is the C$/? cross rate?;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?;6.Clemson Software is considering a new project whose data are;shown below. The required equipment has;a 3-year taxlife, 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?;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?;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?;Equipment cost;(depreciable basis) $70,000;Sales revenues, each year $42,500;Operating costs (excl.;depreciation) $25,000;Tax rate 35.0%


Paper#50923 | Written in 18-Jul-2015

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