A South African Firm Has Contracted to Sell a U

question 26

Short Answer

A South African firm has contracted to sell a U.S. firm goods valued at 200,000 rand. The rand is valued at $10.4150. Compute the value of the shipment in U.S. dollars.​

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment relative to its cost.

Residual Income

The income that remains after all personal debts and expenses have been paid from one's net income.

Minimum Required Rate

The lowest acceptable return on investment required by an investor or manager.

Return On Investment

A measure of the profitability of an investment, calculated as the ratio of net returns to the initial capital cost.