Assume that Baps Corporation is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5,000,000. If the project is undertaken, Baps would terminate the project after four years. Baps’ cost of capital is 13%, and the project is of the same risk as Baps’ existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the project’s lifetime in Norwegian kroner (NOK):

The current exchange rate of the Norwegian kroner is $.135. Baps’ exchange rate forecast for the Norwegian kroner over the project’s lifetime is listed below:

What is the net present value and internal rate of return on the Norwegian project?

Unit V Essay

Assume that an unfair labor practice charge was filed against your company by several employees and three prospective

employees. See the form linked below indicating the charge, which outlines the scenario below:

FORM NLRB-501: Case 4689-3

On July 29, 2016, Delphi Golf, Inc. and the union entered a collective bargaining agreement. The majority of the

company’s employees covered by the agreement had not designated the union as their collective-bargaining

representative. The agreement contains a union-security clause requiring employees who are members in

good standing of the union to maintain their membership in good standing and all other employees to become

members of the union on or before the 31st day following the effective date of the agreement or the date of their

hire. The union instructed Delphi Golf, Inc. not to employ three servers for restaurant positions in the company

because the servers were not members of the union. The company is an employer within the meaning of

Section 2(2) of the act engaged in commerce within the meaning of Section 2(6) and (7) of the act.

Explain in a two-page essay the process and steps your company will have to take to defend this action. Explain the

defenses to the action and if the union employees have valid claims. What actions by the employer should have been done

differently, if at all? What actions by the union should have been done differently? Who, if anyone, is liable?

You are required to use at least your textbook as source material for your response. All sources used, including the

textbook, must be referenced; paraphrased and quoted material must have accompanying APA style citations.

Assume an investor uses the constant-growth DVM to value a share. Listed below are various situations that could affect the computed value of a share. Look at each one of these individually and indicate whether it would cause the computed value of a share to go up, down or stay the same. Briefly explain your answers.

a. Dividend payout ratio goes up

b. Share’s beta rises

c. Equity multiplier goes down

d. Government bond rates fall

e. Net profit margin goes up

f. Total asset turnover falls

g. Market return increases

Assume throughout that the current dividend (D₀) remains the same and that all other variables in the model are unchanged.

Assume a DVC and an IAC presently have real per capita outputs of $500 and $5,000 respectively. If both nations have a 3 percent increase in their real per capita outputs, by how much will the per capita output gap change?

Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan’s eight-year life.a. at what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate?b. Now, if interest rates on other similar quality loans are 10 percent, what would be the PV of this loan?c. What would be the PV of the loan if the interest rate is 8 percent on similar quality loans?