Consider the Position of a Treasurer of a MNC, Who

question 2

Multiple Choice

Consider the position of a treasurer of a MNC, who has $20,000,000 that his firm will not need for the next 90 days.

• A)He could borrow the $20,000,000 in the money market.
• B)He could take a long position in the Eurodollar futures contract.
• C)He could take a short position in the Eurodollar futures contract.
• D)None of the above

Understand and calculate the payback period for an investment.

Understand and calculate the simple rate of return for an investment.

Evaluate the financial attractiveness of investments considering different aspects like intangible benefits, tax implications, renovation costs, and depreciation.

Apply correct discount factors to cash flows based on project life and discount rate.

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Definitions:

Beetle Lineage

The evolutionary history and classification of beetles, a diverse group of insects with a hard exoskeleton and over 350,000 species.

Hard Shells

Rigid external coverings that provide protection to the bodies of certain animals, like mollusks and turtles.

Reptiles

A class of cold-blooded, air-breathing vertebrates characterized by their skin covered in scales or hard plates, laying eggs, and typically having a three-chambered heart.