16 1 Scenario: It is January 1". Target and a Japanese supplier of sweatpants sign a contract that states that Target will pay 10 billion Yen to the supplier on April 15 for five million pairs of sweatpants. 11. If, today, the exchange rate between Japanese Yen and USD is 100:1, how much will the shipment of sweatpants cost Target if they pay off the contract today? 12. If, on April 1st, the exchange rate between the Japanese Yen and USD has changed to 110:1, how much will the shipment of sweatpants cost Target if they wait until the "settle date" to pay off the contract? 13. Did the US dollar increase or decrease in value between January 1" and April 1"? 14. If you were Target CEO, Gregg Steinhafel, would you pay the contract on January 1" or wait until April 1st? Explain your answer. 15. Circle the best answers in the following sentence to illustrate your understanding of questions 11-14. It is (cheaper/more expensive) to import products from Japan if the value of the USD increases/decreases) relative to the JPY Yen