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Fort Collins, Inc. has $1 million in cash available for 30 days. It can earn 1% on a 30 -day investment in the U.S. Alternatively,
Fort Collins, Inc. has $1 million in cash available for 30 days. It can earn 1% on a 30 -day investment in the U.S. Alternatively, if it converts the dollars to Mexican pesos, it can earn 11/2% on a Mexican deposit. The spot rate of the Mexican peso is $.12, and the spot rate 30 days from now is expected to be $10. Should Ft. Collins invest its cash in the U.S. or in Mexico? Support your
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