Hurte-Paroxysm Preducts, lne. (B). Hurte-Paroxysm Products, Inc (HP) of the United States, exports comguter printers to Brazl, whose currency, the real (R5) has been trading at R\$3 30US5 govermment. Should the devaluation take place, the real is expectod to remain unchanged for another docade. Accopting this lorecast as given, HP faces a pricing decision that must be made belore any actual devaluation: HP may either (1) maintain the same real price and in eltect sol for fewer dolars, in which case Brazblian volume will not charge, or (2) maintain the swme bollar price, rase the real price in Brazil to compentale for the devaluation, and experience a 20% drop in volume. Dioct costs in the Unceed States are 60% of the U.5. salos price HP also beleves that if it maintains the same price in Brazlian real as a permanent policy, volume wit increase at 11\%s per anrum through year sik, conts wili not charge. Af the and of aic years. HPs palent expires and z wil no longer export to Brazi. After the reat is deralued to R\$3 saMss, no turther devaluation is expected. If HP raises the prico in reat so as bo maintain its dolar price. wolume will increase ot only 2% per antum Eirough year six, starting from the lower indel base of 44,000 units. Agan, dollar costs will not change, and at the ond of six years, HP will sfop whorting to Braz. HP's woighted average cost of caphal it 15\%. CVen these comiderations, what do you recommend for HP's pricing policy? Justify your tecommendetion. CA5L 1 51900.60 - 5114. Calculate the gross peofits for years 1 Rrough 6 in the folowing table: (Round to the noarest dollar