Start your free one mo TRANSACTION, ECONOMIC, AND TRANSLATION EXPOSURE TABLE 18.4 Dollar Profit per Swedish Bicycle Sale: No Change in Exchango Rate (inflation the same in both countries) Year 1 Year 2 Year 3 Year 4 Revenue $ 1.880 $ 1.974 $2.072.70 S2.178.33 Cost $ 1,200 $ 1,260 $1,323.00 $1,389.15 Krona profit S680 $ 714 $ 749.70 $ 787.33 Exchange rate 6.5477 6.5477 6.5477 6.5477 Dollar profit $103.85 $109.05 $ 114,50 $ 120.25 TABLE 18.5 Dollar Profit per Swedish Bicycle Sale: Increase in Exchange Rate Due to Different Inflation Rates Year 1 Year 2 Year a Year 4 Revenue $ 1,880 $ 1,974 52,072.70 $2,176.33 Cost $ 1.200 $ 1.200 51,323.00 $1,389.15 Krona profit $ 680 $ 714 $ 749.70 $ 787.33 Exchange rate 6.5477 6.6587 6.7715 6.8863 Dollax Profit S10385 $107.23 $ 110.71 $ 114.33 2. Economic exposure. Just before Cars R Us, Incorporated starts the project outlined in the problem above, the government announces new anticipated inflation numbers. For Japan, the estimate is a higher Inflation rate of 5%. For the United States, the estimate is a lower projection of 3.0%. If the production cost inflation rate remains at 2.5%, will these new anticipated inflation rates impact the production of vintage 240-Zs