Question
Nkole Co needs to procure a specialized machine from the Gambia in order to actualize the proposed operations in Guinea. The machine is expected to
Nkole Co needs to procure a specialized machine from the Gambia in order to actualize the proposed operations in Guinea. The machine is expected to cost GMD 1,250,000 (Gambian Dalasi One Million Two Hundred Fifty Thousand). However, no official exchange rate exists between the Zambian Kwacha and Gambian Dalasi. Nevertheless, official exchange rates subsist between the Zambian Kwacha and the United States Dollar as well as between the Gambian Dalasi and the United States. These rates are as shown below; Federal Reserve Bank S (ZAR/USD) =55 Bank of Zambia S (USD/ZMW) =1.50 Central Bank of Gambia S (USD/GMD) =80 Required: In view of this revelations cited above, the bard of directors of Nkole Co has requested you as CFO to estimate the likely cost of this specialized machine in Zambia kwacha.
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