Assume the same facrs as in High-Protile Printers (A) in question 1. HPP also believes that if it maintains the same price in Brazilian real as a permanent policy, volume will increase at \(10 \%\) per annum for six years. Dollar costs will not change. At the end of six years HPP's patent expires and it will no longer export to Brazil. After the real devalues to R\$2.0000/USS, no further devaluation is expected.

If HPP raises the price in real 50 as to maintain irs dollar price, volume will increase at only \(4 \%\) per annum for six years, starting from the lower initial base of 80,000 units. Again dollar costs will not change, and at the end of six years HPP will stop exporting to Brazil.

HPP's weighted average cost of capital is \(14 \%\). Given these considerations, what do you recommend for HPP's pricing policy: Justify your recommendation.