Question
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5127 S$/US$. You have just placed an order for 28,000 motherboards at
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5127 S$/US$. You have just placed an order for 28,000 motherboards at a cost to you of 231.30 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $161 each.
- Calculate your profit if the exchange rates stay the same over the next 90 days.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
2. Calculate your profit if the exchange rate rises by 11 percent over the next 90 days.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
3. Calculate your profit if the exchange rate falls by 11 percent over the next 90 days.
Note: 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.
4. What is the break-even exchange rate?
Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.
5. What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar?
Note: Enter your answer as positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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