Question: A 250-V, 4-pole, wave-wound d.c. series motor has 782 conductors on itsarmature. It has armature and series field resistance of 0.75 ohm. The motor takesa current of 40 A. Estimate its speed and gross torque developed if it has a flux per pole of 25 mWb Answer: Step 1 Mechanical Engineering homework question answer, step 1, image 1 Mechanical Engineering homework question answer, step 1, image 2 Step 2 Mechanical Engineering homework question answer, step 2, image 1 Step 3 Mechanical Engineering homework question answer, step 3, image 1

Link will be apear in 30 seconds.

Well done! you have successfully gained access to Decrypted Link.

 Processing math: 100%

Question:

Airbus has a foreign-currency denominated payable, it can hedge by buying the foreign currency payable forward. The company can expect to eliminate the exposure without incurring costs as long as the forward exchange rate is an unbiased predictor of the future spot rate. Airbus exported an A380 to a UK company, and was billed the sum of £ 12,000,000 payable in three months. Currently the spot rate is $1.40/£ and the three-month forward rate is $1.36/£.The three-month money market interest rate is 12% per annum in US and 8% per annum in UK.So the management of Airbus decided to manage this transaction exposure and use the money market hedge to deal with this pound account payable.

Explain how Airbus can eliminate the exchange rate
exposure

Airbus has a foreign-currency denominated payable, it can hedge by buying the foreign currency payable forward. The company can expect to eliminate the exposure without incurring costs as long as the forward exchange rate is an unbiased predictor of the future spot rate. Airbus exported an A380 to a UK company, and was billed the sum of £ 12,000,000 payable in three months. Currently the spot rate is $1.40/£ and the three-month forward rate is $1.36/£.The three-month money market interest rate is 12% per annum in US and 8% per annum in UK.So the management of Airbus decided to manage this transaction exposure and use the money market hedge to deal with this pound account payable.Explain how Airbus can eliminate the exchange rateexposure

Step 1

Here,

Spot Rate is $1.40/£

Three month forward rate is $1.36/£

Three month market interest rate of US is 12% per annum

Three month market interest rate of UK is 8%

Explanation:

In order to eliminate  exchange rate exposure, the company will use money market hedge by using following steps:

Step-1: Borrow the foreign currency in an amount equivalent to the present value of the receivable. 

Present Value of Loan = Future Value(1+rn)n=£ 12,000,000 (1+.084)1=£11,764,705.882

Step-2: Convert the foreign currency into domestic currency at the spot exchange rate.

=£11,764,705.882×1.40=$16,470,588.235

Step-3: Place the domestic currency on deposit at the prevailing interest rate. Therefore Amount Receivable in 3 months will be:

=$16,470.588.235×(1+.124)1=$16,964,705.882

Step-4: When the foreign currency receivable comes in, repay the foreign currency loan (from step 1) plus interest which is equal to £ 12,000,000

By using this technique, the forward exchange rate locked in by the firm is :

=$16,964,705.882 £ 12,000,000=$1.4137254901/£

By using Money market hedge , the company can eliminate exchange rate exposure which is not possible with the forward contract as the company is not getting competitive forward rate as it is getting in money market hedge.