Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 8 (of 10) value: 1.00 points Problem 31-9 Exchange Rate Risk Suppose your company imports computer motherboards from Singapore. The exchange rate is currently
Question 8 (of 10) value: 1.00 points Problem 31-9 Exchange Rate Risk Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2871 S$/USS. You have just placed an order for 34,000 motherboards at a cost to you of 233.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $194 each. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.) Profit at the current exchange rate $ 427870.10 What is your profit if the exchange rate goes up by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Profit if the exchange rate up by 10% $ 988609.18 What is your profit if the exchange rate goes down by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) $257477.67 Profit if the exchange rate down by 10% What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) 1.2036 S$ Break-even exchange rate What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, .9, 32.16) Percentage change % (Click to select)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started