Problem 10-6 (algorithmic) Question Help Embraer of Brazil. Embraer of Brazil is one of the two leading global manufacturers of regional jets (lombardier of Canada is the other) Regional jets are smaller than the traditional vin airliners produced by Airbus and Boeing, seating between 50 and 100 people on average Embraer has concluded an agreement with a regional US arine to produce and deliver four arcraft one year to now for S7 million Although Embraer will be paid in US dollars, it also possesses a currency exposure of inpute must pay foreign suppliers $18 million for inputs on your from now but they wil be delivering the subcomponents throughout the year). The current spot rate on the Brazilian real (5) R$18217/5, but it has been steadily appreciating against the US dollar over the past three years Forward contracts are difficult to acquire and are considered expensive. Ctbank Brasil has not exploty provided Embraer a forward rate quote, but has stated that it will probably be poing a forward of the current 4.50% US dollar eurocurrency rate and the 11 25%. Brazilian government bond rate Advise Embraer on currency exposure How much of niat cash position in Brazilian reais Will Embraer receive in one year without a hedge of the expected spot role in one year is expected to be R$18217757 RS Round to the nearest whole number)