subject
Business, 30.10.2019 01:31 mem8163

Microsoft, whose global sales are generally dollar denominated, finds it has excess cash of $750,000,000, which it can invest for up to three years. it has determined that its best options are either a three-year euro-dollar ($) deposit paying 4.5% or a three-year euro denominated deposit paying 5.5% since it expects the euro to depreciate 1% per annum against the dollar over the next three years. using a cash flow analysis, determine in which currency microsoft should invest. be sure to show your complete calculations of the annual return and conversion of euro back to dollars at the end of the three-year term. assume that the annual interest amount is reinvested, i. e. compounds, at the same annual interest rates. would your answer change if microsoft revised its outlook for the euro to depreciate 1.25% per year?

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 17:30, u8p4
The digby's workforce complement will grow by 20% (rounded to the nearest person) next year. ignoring downsizing from automating, what would their total recruiting cost be? assume digby spends the same amount extra above the $1,000 recruiting base as they did last year. select: 1 $2,840,000 $3,408,000 $570,000 $475,000
Answers: 1
image
Business, 22.06.2019 16:20, tristan4233
Carlos hears juan and rita’s complaints about the new employees with whom they have to work with, as well as their threats to quit the company. if carlos were to reassign juan and rita to new, unique roles and separate them from the ronny and bill, it would signal that carlos has moved into the stage of managing resistance.
Answers: 3
image
Business, 22.06.2019 21:30, lekylawhite16
Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is:
Answers: 1
image
Business, 23.06.2019 00:00, Mypasswordishotdog11
Match each economic concept with the scenarios that illustrates it
Answers: 2
You know the right answer?
Microsoft, whose global sales are generally dollar denominated, finds it has excess cash of $750,000...

Questions in other subjects:

Konu
Mathematics, 16.06.2020 03:57