Use the following information to answer the questions below. Assume the capital account is equal to 0. Net unilateral transfers 250 Exports of goods and services 500 Net increase in United States government’s nonreserve foreign assets 30 Net increase in foreign ownership of United States based nonreserve assets 400 Net increase in U. S. private assets abroad 250 Invest income received in the U. S. 200 Net increase in U. S. ownership of official reserve assets 20 Imports of goods and services 600 Net increase in foreign ownership of U. S.-based reserve assets 100 Investment income paid abroad by the U. S. 300 (a) What is the current account balance? (b) What is the capital account balance? (c) What is the financial account balance?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?