If anyone can help me out with this cram session of mine that would be fantastic
ID: 1194091 • Letter: I
Question
If anyone can help me out with this cram session of mine that would be fantastic! ive been going though my book but having trouble seeing what i did wrong on most of these.
Type B ENGR 3420 Test 2 (100) Last Name:aharpy Cesse Last Name: Zaehar NOTE: Show your works clearly and underline answer 1 . Solve the following problems at the annual interest rate 2%. Initial Cost Annual costs Annual benefit costs Annual benefit Salage Useful lives A: $40,000 2,500 B: $70,000 2,000 15,000 18,000 24,000 40,000 4 years 6 years 1) Calculate the Present Worth of the benefits and costs for each option when the analysis period is 12 years. Each alternative will be replaced after the useful life. (15 points) 2) Calculate the EUAB and EUAC for each option when the analysis period is 24 years. Each alternative will be replaced after the useful life. (15 points) 7 0.575 0212 0nss 0.1585Explanation / Answer
Foreign exchange risk involves the adverse affect on the value of an FI’s assets and liabilities that are located in another country when the exchange rate changes. An FI is net long in foreign assets when the foreign currency-denominated assets exceed the foreign currency denominated liabilities. In this case, an FI will suffer potential losses if the domestic currency strengthens relative to the foreign currency when repayment of the assets will occur in the foreign currency. An FI is net short in foreign assets when the foreign currency-denominated liabilities exceed the foreign currency denominated assets. In this case, an FI will suffer potential losses if the domestic currency weakens relative to the foreign currency when repayment of the liabilities will occur in the domestic currency