The latimore company invested $8.5 million in a new plant in italy when the exchange rate was 1.1500 euros to the dollar. at the end of the year, the rate was 1.2000 euros to the dollar. (indirect quotes.)

a. did latimore make or lose money on the exchange rate movement? if so, how much?

b. what kind of exchange rate gain or loss was it?

c. what was the tax impact if latimore’s marginal tax rate is 40%?

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

The answer is c) it has a lower cost to attend