Elan Pharmaceuticals.Elan Pharmaceuticals, a U.S.-based multinational pharmaceutical company, is evaluating an export sale of its cholesterol-reduction drug with a prospective Indonesian distributor. The purchase would be for

1 comma 7001,700

million Indonesian rupiah (Rp), which at the current spot exchange rate of

Rp9 comma 4509,450/$,

translates into

$179 comma 894.18179,894.18.

Although not a big sale by company standards, company policy dictates that sales must be settled for at least a minimum gross margin, in this case, a cash settlement of

$173 comma 000173,000.

The current 90-day forward rate is

Rp9 comma 9509,950/$.

Although this rate appeared unattractive, Elan had to contact several major banks before even finding a forward quote on the rupiah. The consensus of currency forecasters at the moment, however, is that the rupiah will continue to strengthen, possibly rising to

Rp 10 comma 170 divided by $Rp10,170/$

over the coming 90 to 120 days. Analyze the prospective sale and make a hedging recommendation.

How much in U.S. dollars will Elan receive in 90 days without a hedge if the expected spot rate in 90 days is assumed to be

Rp9 comma 4509,450/$?

(Round to the nearest cent.)