Chapter 4, Problem 10QA

According to the flow of balance of payment (BOP) approach to exchange rate determination, there are financial measures being put in place by countries with managed floating exchange rate regime in order to cope with a deficit in its BOP.In order to control those countries currency volatility and opt for stabilization what will happen if they run persistent BOP deficits for a couple of years?   T-Mobile., like many emerging telecom carriers, has only limited and infrequent access to domestic debt and equity markets. As a financial management at Ait, how would you be able to demonstrate to the Board of Directors and convince them as to why the Net Present Value and Internal  Rate of Return capital budgeting decision rules sometimes provide different  rank orderings of investment project alternatives?   Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the investment in 3 years. If economists expect inflation to rise 30 percent annually, what…