International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments—domestic and foreign.

An investment of $100 generates after-tax cash flows of $40 in Year 1, $80 in Year 2, and $120 in Year 3. The required rate of return is 20%. The net present value is closest to:

a. $42.22. b. $58.33. c. $68.52.

On January 1, 2017, Simpson Sales issued $23,000 in bonds for $35,800

These are eight-year bonds with a stated rate of 9% and pay semiannual interest. Simpson Sales uses the straight-line method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follows: Bonds Payable 23,000 Premium on Bonds Payable 12,800 After the first interest payment on June 30, 2017, what is the balance of Premium on Bonds Payable? A) debit of $800 B) debit of $14,400 C) credit of $235 D) credit of $12,000