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International Finances CL company has been pursuing a major new customer in Mexico. The customer is interested in buying a piece of equipment from you
International Finances CL company has been pursuing a major new customer in Mexico. The customer is interested in buying a piece of equipment from you that has a price of $50,000. In an effort to close the deal, you offer terms that allow them to pay in Pesos in 90 days. On September 1, the date of the deal, the spot exchange rate is $1 = 20 Pesos. So the invoice amount is 1,000,000 Pesos due in 90 days - November 30. On November 30, the customer pays the agreed upon invoice amount of 1,000,000 Pesos. However, the new exchange rate is $1 = 25 Pesos What is the resulting US dollar gain or loss from the change in the exchange rate
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