Question
A US based computer manufacture produces and sells laptops in South America through two manufacturing facilities: one in Argentina and the other in Brazil. The
A US based computer manufacture produces and sells laptops in South America through two manufacturing facilities: one in Argentina and the other in Brazil. The following applies:
|
| Argentina | Brazil |
| Investment price | 200 million US$ | 200 million US$ |
| Cost per Laptop | 900 pesos | 600 reals |
| Price per Laptop | 1200 pesos | 800 reals |
| Projected Annual Earnings | 150 million pesos | 100 million reals |
| Exchange Rate | Pesos 3 / US$ | Reals 2/US$ |
If Brazil real depreciates 20% against the US$, what is the new pesos/real exchange rate?
| 1.2 | ||
| 1.25 | ||
| 1.88 | ||
| 1.9 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
