« previous next »

Author Question: A bottle of German wine costs 21 (euros) in Berlin. According to the purchasing power parity ... (Read 248 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jul 10, 2018
A bottle of German wine costs 21 (euros) in Berlin. According to the purchasing power parity
  theory,
 
  what would the bottle sell for in New York if it costs the New York company 1.25 per
  bottle to transport the wine to the United States? Assume the exchange rate is 1.32 per euro.
  A) 40.54 B) 39.50 C) 28.97 D) 27.22

Question 2

Your firm intends to finance the purchase of a new construction crane. The cost is 1,500,000. What is the size of the first payment if the crane is financed with an interest-only loan at an annual rate of 8.50?
 
  A) 228,611.56
  B) 127,500.00
  C) 3,391,475.16
  D) There is not enough information to answer this question.


af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

Answer: B
Explanation: B) PMT = r  PV = .085  1,500,000 = 127,500.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Increasing Costs of Natural Disasters Increasing Costs of Natural Disasters
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Power-tower in Southern California, largest such facility in the world Power-tower in Southern California, largest such facility in the world
Using the Power Rule for Derivatives Using the Power Rule for Derivatives
Physics: Power, Energy and Time Physics: Power, Energy and Time
Sadie is going to see a movie and is taking her four kids. each movie ticket costs $15 and ... Sadie is going to see a movie and is taking her four kids. each movie ticket costs $15 and ...
Video: Transferring genes into plants Animation

For a complete list of videos, visit our video library