You Are Analyzing a Very Low-Risk Project with an Initial

question 16

Multiple Choice

You are analyzing a very low-risk project with an initial cost of £120,000. The project is expected to return £40,000 the first year,£50,000 the second year and £60,000 the third and final year. The current spot rate is £.54. The nominal return relevant to the project is 4 percent in the U.K. and 3 percent in the U.S. Assume that uncovered interest rate parity exists. What is the net present value of this project in U.S. dollars?

• A) $33,232
• B) $34,040
• C) $34,067
• D) $34,422
• E) $35,009

Understand the effectiveness of direct and indirect communication approaches in business messages.

Recognize when to employ positive messaging techniques.

Identify strategies for handling customer complaints constructively.

Learn the structure of routine replies or positive messages requiring follow-up action.

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Definitions:

Cost of Goods Sold

The immediate expenses related to creating a company's sold products, encompassing the price of materials and the labor specifically involved in manufacturing the item.

Gross Profit Inventory Method

An accounting method to estimate the value of ending inventory and cost of goods sold using the gross profit margin.

Inventory Valuation

The method used to determine the cost associated with an inventory at the end of an accounting period, impacting the cost of goods sold and net income.

Gross Profit

The financial metric indicating the difference between revenue and the cost of goods sold (COGS), reflecting the efficiency of core operations.