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A _____ Refers to a Financial Contract That States That

question 54

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A _____ refers to a financial contract that states that the importer's bank will pay a specific sum of money to the exporter upon delivery of the merchandise.


Definitions:

Working Capital Investment

Funds used to finance day-to-day business operations, such as inventory purchase and accounts receivable.

Discount Rate

The interest rate used to discount future cash flows to their present values.

Net Present Value

The gap between the present worth of money coming in and going out over an established duration.

Pretax Return

The income or profit of a company before income tax expenses are deducted.

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