8-36. Apex, Inc. is a U.S.-based firm that is in the process of buying a medium-sized company...

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8-36. Apex, Inc. is a U.S.-based firm that is in the process of buying a medium-sized company in Brazil. Because the Brazilian company sells its services to the global marketplace, revenues are dollar denominated. Its costs, however, are expressed in the Brazilian currency. If Apex anticipates a stronger dollar, which tends to decrease the value of the Brazilian currency, explain why the Brazilian company’s purchase price may be relatively insensitive to exchange-rate fluctuations. (8.6)

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Engineering Economy

ISBN: 9781292265001

17th Global Edition

Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling

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