Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2851 S$/US$. You have just placed an order for 20,000 motherboards at

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2851 S$/US$. You have just placed an order for 20,000 motherboards at a cost to you of 230.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $190 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 $

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% $

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. Negative amounts should be indicated by a minus sign.)

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.)

Break-even exchange rate S$ /$

What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar?

Can anyone help me to solve this Please!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Finance

Authors: Kirt C. Butler

4th Edition

1405181184, 978-1405181181

More Books

Students also viewed these Finance questions