Please show all calculations and be detailed with your answer. If using Excel, please show data.

practice 6:

A U.S. firm buys merchandise from a Portuguese company at a cost of EUR 250,000. The merchandise will not be delivered for six months and, therefore, the U.S. firm does not have to pay for the product until its delivered. If the current exchange rate today is 1.1200 U.S. dollars per euro and the U.S. firm chooses not to hedge its currency risk, the U.S. firm will effectively be paying more for the merchandise (i.e. lose money) if the EURUSD exchange rate moves in which direction?