Merlion Construction Co. based in Singapore has a 6-month THB 1 million contract to complete construction work for Sabai University in Hua Hin, Thailand. The current spot rate is THB/SGD 24.00 and the 6-month forward rate is THB/SGD 26.00. Under conditions of equilibrium, management would use which of the following amounts to prepare operating budgets?

A.

THB 1 million

B.

SGD 38,462

C.

SGD 41,667