Umar Enterprise sold laptops and photostat machines to the AZ Institute in Germany on credit within six months payables with invoiced 10 million. Currently, the six-month forward exchange rate is $1.10/ and the financial advisor for Umar Enterprise predicts that the spot rate is likely to be $1.05/ in six months.

a) Compute the estimated profit or loss from forward hedging. now would you advise advise Umar Enterprise to hedge? Discuss.