As an importer of grain into Japan from the United States, you have agreed to pay $377,287 in 90 days after you receive your grain. You face the following exchange rates and interest rates: spot rate, ¥106.35/$, 90-day forward rate ¥106.02/$, 90-day USD interest rate, 3.25% p. a., 90-day JPY interest rate, 1.9375% p. a. First, you could hedge your risk by buying dollars forward at ¥106.02/$. Second, you could determine the present value of the dollars that you owe and buy that amount of dollars today in the spot market. You could borrow that amount of yen to avoid having to pay today. Based on the two alternatives, how much can you save between the two alternatives? A) ¥39,999,967.74 B) ¥6092.53 C) ¥198,879.05 D) ¥124,504.71 E) None of the above

Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):