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Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2964 S$/US$. You have just placed an order for 25,000 motherboards at
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2964 S$/US$. You have just placed an order for 25,000 motherboards at a cost to you of 238.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $200 each.
a. | 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.) |
b. | What is your profit if the exchange rate goes up by 10 percent over the next 90 days? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
c. | What is your profit if the exchange rate goes down by 10 percent over the next 90 days? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. ) |
d. | What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) |
e. | 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, e.g., 32.16.) |
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