Please show work for the blank boxes in blue, please keep work in line with how the problem is set up and set up solution as such - ie - Highest expected rate =, expected rate =, lowest expect rate =, transfer dollars to questzals today, invest for six moths cost in dollars in six months =

Farah Jeans of San Antonio, Texas, is completing a new assembly plant near Guatemala City. A final construction payment of Q8,400,000 is due in six months. (" Q " is the symbol for Guatemalan quetzals.) Farah Jeans uses 20% per annum as its weighted average cost of capital. Today's foreign exchange and interest rate quotations are: Farah's treasury manager, concerned about the Guatemalan economy, wonders if Farah should be hedging its foreign exchange risk. The manager's own forecast is as follows: What realistic alternatives are available to Farah for making payments? Which method would you select and why? 3. Transfer dollars to quetzals today, invest for six-months quetzals needed today (A/P discounted 180 days) 7,850,467.29 Cost in dollars today (quetzals to S at spot rate) $1,121,495.33 factor to carry dollars forward 180 days (1+(WACC/2)) 1.10 Cost in dollars in six-months ( $ carried forward 180 days ) Certain