TropiKana Inc

question 47

Multiple Choice

TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, what is the before tax cost of capital if the firm repays the entire loan plus interest (rounded) ?

• A) 1.73%
• B) 5.50%
• C) 10.50%
• D) 9.27%

Understand the purpose and process of conducting needs assessments.

Recognize the historical context and evolution of organizational models, particularly during the Industrial Revolution.

Classify types of behavior patterns of professionals in bureaucratic settings.

Understand the concept of needs assessment and its scope.

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Definitions:

Maintenance Department

A division within a company responsible for maintaining equipment, facilities, and systems in working order.

Operating Divisions

Distinct areas within a company that are responsible for different operations, products, or markets, often treated as separate business units.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, and are inevitable regardless of business activity.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.