The estimated purchase price for the equipment required to move the operation in-house would be $750,000. Additional net working capital to support production (in the form of cash used in Inventory, AR net of AP) would be needed in the amount of $35,000 per year starting in year 0 and through all years of the project to support production as raw materials will be required in year o and all years to run the new equipment and produce components to replace those purchased from the vendor.. ? The current spending on this component (i.e. annual spend pool) is $1,200,000. The estimated cash flow savings of bringing the process in-house is 20% or annual savings of $240,000. This includes the additional labor and overhead costs required.

? Finally, the equipment required is anticipated to have a somewhat short useful life, as a new wave of technology is on the horizon. Therefore, it is anticipated that the equipment will be sold after the end of the project (the last year of generated cash flow) for $50,000. (i.e. the terminal value).

Suppose a toy craze in Canada makes a particular Swiss-produced toy very popular. What effect would this toy have on the balance of trade? It would tend to affect Canada's balance of payments but not its balance of trade It would tend to increase Canada's balance of trade deficit. It would tend to reduce any existing balance of trade deficit in Canada. It would tend to increase Canada's balance of trade surplus. Suppose the exchange rate between British pounds and Canadian dollars is originally $1.50 per pound. If it then changes to $2 for 1 pound, what will tend to happen to the volume of imports of British goods into Canada? The volume of imports will tend to rise The volume of imports will tend to change in an indeterminate direction The volume of imports will tend to fall. O The volume of imports will tend to stay the same1. The U.S. trade balances in May and June 2018 were -$43.2 billion and -$46.3 billion. a. Over this period, what happened to the following? 1) Domestic investment and domestic savings 2) Foreign savings b. How are the following Balance of Payments accounts affected by these U.S. trade imbalances? 1) Current account 2) Capital/financial account 3) Official reserve transactionsQuestion 42 (6 points) Which of these three options is the better investment? Use the same P and t value throughout. a. An account that earns 8.2% interest compounding semi-annually b. An account that earns 8.17% interest compounding monthly C. An account that earns 8.15% interest compounding dailyA Moving to another question will save this response. Question 3 The term differential cost refers to: A cost which continues to be incurred even though there is no activity. A cost which does not involve any dollar outlay but which is relevant to the decision-making process. A difference in cost which results from selecting one alternative instead of another. The benefit forgone by selecting one alternative instead of another. 1 Moving to another question will save this response