However, only six months later the deal is not viable as can be seen in the table below: We have two questions for this case. For each of them, even if you choose only one wrong answer, all the marks of the question will be deducted. Identify a strategy for each of the equipment and labour cost elements of the transaction that will mitigate the risk of loss. Question 40 Not yet answered Marked out of 8.00 Remove flag What financial factors would you need to take into account in implementing these strategies? Select one or more: a. Strength and movement of to b. Willingness of EIL customers to accept currency movement risks c. Strength and movement of $ to d. Willingness of EIL to disclose cost breakdown when quoting currency linkage e. Ability of EIL to accept some currency risk Question 39 Not yet answered Marked out of 8.00 Remove flag Equipment Installations Ltd., (EIL) are a UK-based company who install robotic production line equipment for specialist industries. Strategically, the company sources from ROBOCO Inc. in the United States. Deliveries from the US can take from 6 to12 weeks depending upon available production capacity. ElL quote a 26 -week lead time to include for the variable supply costs and to cover installation. EIL are never late on commissioning the equipment; 40% of the sales are to EURO zone countries who insist on Euro pricing. A typical installation selling for 1m would include $800,000 of equipment and 300,000 labour. With exchange rates of $1.6638/ and 1.1025/ the economics are as follows