International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,950 and a cash inflow the following year of $3,950. IMC estimates that its risk-adjusted cost of capital is 18%. Currently, 1 U. S. dollar will buy 6.6 Swedish kronas. In addition, 1-year risk-free securities in the United States are yielding 3%, while similar securities in Sweden are yielding 2%.

a. If the interest parity holds, what is the forward exchange rate of Swedish krona per U. S. dollar?
b. If IMC undertakes the project, what is the net present value and rate of return of the project for IMC in home currency?

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)