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Please show work on how to find the answers. Thank You! 16. Operating Exposure. A U.S.-based MNC Floating Point sells computers in India. Annual sales

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Please show work on how to find the answers. Thank You!

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16. Operating Exposure. A U.S.-based MNC Floating Point sells computers in India. Annual sales are 10,000 units at a price of INR 50,000 each. INR is currently at USDINR = 50. Because of market shocks, the INR depreciates to USDINR = 54. Consequently, the firm is forced to raise prices to INR 52,000 per computer. a. Examine the exposure faced by this firm assuming that units do not change. b. Next assume that because of increased prices, unit volume declines by 10 percent, and reestimate exposure

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