Embraer of Brazil. Embraer of Brazil is one of the two leading global manufacturers of regional jets (Bombardier dof Canada is the other). Regional jets are smaller than the traditional civilian airliners produced by Airbus and Boeing. seating between 50 and 100 people on average. Embraer has concluded an agreement with a regional U.S. airline to produce and deliver four aircraft one year from now for $80 million Although Embraer will be paid in U.S. dollars, it also possesses a currency exposure of inputs-it must pay foreign suppliers $20 million for inputs one year from now (but they will be delivering the subcomponents throughout the year) The current spot rate on the Brazilian real (RS) is R$1.8240/5, but it has been steadily appreciating against the U.S. dollar over the past three years. Forward contracts are difficult to acquire and are considered expensive. Citibank Brasil has not explicitly provided Embraer a forward rate quote, but has stated that it will probably be pricing a forward off the current 4.00% US dollar eurocurrency rate and the 10.50% Brazilian government bond rate. Advise Embraer on its currency exposure ns of net cash position in Brazilian reais will Embraer receive in one year without a hedge if the expected spot rate in one year is expected to be RS1.8240/s? RSL? (Round to the nearest whole number) et 2 Enter your answer in the answer box and then click Check