Question
A U.S. firm is expecting cash flows of 40 million Mexican pesos and 55 million Indian rupees. The current spot exchange rates are $1 =
A U.S. firm is expecting cash flows of 40 million Mexican pesos and 55 million Indian rupees. The current spot exchange rates are $1 = 11.736 pesos and $1 = 45.211 rupees. Assume these cash flows are not received for one year and the expected spot rates at that time will be $1 = 11.132 pesos and $1 = 44.082 rupees
What is the difference in dollars received that was caused by the delay? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.)
The firm would get $ ___ million (more or less) in one year.
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