An Australian Firm Is Evaluating a Proposal to Build a New

question 6

Multiple Choice

An Australian firm is evaluating a proposal to build a new plant in the U.S.The expected cash flows in $US (in millions) are as follows: Year 0,-100; Year 1,40; Year 2,50; Year 3,65.The discount rate in $A is 10%,while the discount rate in $US is 12% and the spot rate is $US0.85/$A.
Calculate the NPV in $A:

• A)+25.69
• B)-21.84
• C)+13.10
• D)+21.84

Comprehend the stages of socialization and the role of conformity behaviour at each stage.

Explain the concept of uncertainty reduction theory and its application in organizational settings.

Articulate the impact of socialization processes on organizational identification, commitment, and citizenship behaviour.

Distinguish between anticipatory socialization and other forms of socialization within organizations.

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Definitions:

Portfolio Returns

The overall gains or losses generated by a portfolio of investments over a specific period, assessing the effectiveness of investment choices.

Systematic Risk

Refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.