pos 19. The exchange rates UI TUHU nesses involved in foreign trade. In what way oth affect individual consumers? del Business Financial Calculations es to produce either digita) Por 20. An electronics company can use its resource e each camera and To pro Cameras or cellular phones. It costs $87 to prou set it will be able to sell ment $58 to produce each phone. In the current ma COL 8,500 cameras at $127 each of ameras at $127 each ar 12750 phones at $92 each. What trate e difference in the comnany's profit for each of the choices? x rate was 15 percent on income new 21. In a recent year the federal corporate tax rate CR "p to 50,000 and 25 percent for income from $50,000-$75,000. In the exa e year, the individual income tax rate was 0 percent for income un $7,500, 15 percent for income from $7,500-$30,500 and 25 percent come from $30,500-S74,000. What would be the difference in in come tax paid by a person who organized a small business as a corpora re tion versus a sole proprietorship with a business income of $69,800? 22. Allan has a grain farm in lowa. His cost for raising corn is $2.28 per bushel. He sold his corn crop at three different times on the commod. ity market. In June after his corn was planted he sold half of his antici pated 300,000 bushel crop on the futures market for $2.32 per bushel. In November he sold 90,000 bushel at $2.30 per bushel on the spot market. The next April, he sold the remaining 60,000 bushel for $2.25 What were Allan's income, costs, and profit or loss from each sale? What were his income, costs, and profit realized from the entire crop? 23. A U.S. manufacturer placed an order with a German company for some specialized production equipment. The final cost of the order was $78,500 EUR. From the time negotiations began until the order was completed and payment needed to be made, the currency exchange rate between the U.S. dollar and the Euro has gone from $1.252 USD/EUR to $1.273. How much more did the U.S. company have to pay based on the rate change? What was the percentage of price increase in U.S. dollars? incial Environment of Business pany take 10 po em ear 3 $500,000 ma CE ng situations Business Financial Calculations 23. For the following situation, what is the payback (in years Initial cost: $1.5 million Cash flows: Year 1 $300,000, Year 2 $400,000, Year 354 Year 4 $400,000, Year 5 $300,000 24. What is the net present value (NPV) for the following situas this capital project be accepted? Explain your answer. Initial cost: $78,000 Cost of capital: 8 percent Cash flows: Year 1 $28,000, Year 2 $37,000, Year 3 $34.000 25. A company is considering a one-year investment that costs su The investment would earn $15,000 during that year. What is ternal rate of return on this investment? 26. In the following situation, calculate the weighted average cost tal (WACC). Proportion of debt: 40 percent Cost of debt: 6 percent Proportion of equity: 60 percent Cost of equity: 9 percent