affiliates in the course of business. The company has determined that on average a remittance from one affiliate to another costs $40. This cost includes bank fees for international funds transfer, costs in each affiliate to process the payment/receipt, and average cost to exchange currency. (Except for this cost, the information for each question is specific to that question.) Aggregating payments 1. In one quarter, the US affiliate made 24 purchases from the Japan affiliate and the Japan affiliate made 8 purchases from the US affiliate. a. What is the total transaction costs of payments if each affiliate pays each invoice separately? b. What is the total transaction costs of payments if the US affiliate aggregates all amounts due to :; :Cו

affiliates in the course of business. The company has determined that on average a remittance from one affiliate to another costs $40. This cost includes bank fees for international funds transfer, costs in each affiliate to process the payment/receipt, and average cost to exchange currency. (Except for this cost, the information for each question is specific to that question.) Aggregating payments 1. In one quarter, the US affiliate made 24 purchases from the Japan affiliate and the Japan affiliate made 8 purchases from the US affiliate. a. What is the total transaction costs of payments if each affiliate pays each invoice separately? b. What is the total transaction costs of payments if the US affiliate aggregates all amounts due to :; :Cו

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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