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 1.2935 S$/US$. You have just placed an order for 32,000 motherboards at

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2935 S$/US$. You have just placed an order for 32,000 motherboards at a cost to you of 238.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 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. A negative answer 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? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage change % (Click to select)FallRise

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

Handbook Of Research Methods And Applications In Empirical Finance

Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk

1st Edition

1782540172, 978-1782540175

More Books

Students also viewed these Finance questions

Question

List and briefly explain five inhibitors of effective listening.

Answered: 1 week ago