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Vilkken Microsystems (B). Assume NBken Microsystems has sold internet servers to Telecom Espafia for 704,000. Payment is due in four months and will be made

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Vilkken Microsystems (B). Assume NBken Microsystems has sold internet servers to Telecom Espafia for 704,000. Payment is due in four months and will be made with a trade acciptance from felacom Espaha Acceptance. The acoeptance fee is 1.5% per annum of the face amount of the note. This acceptance will be sold at a 3.8% per arnum discoure, Also assume that Naken o U.S. dollars at the spot nite of exchange of $1.01/ or 2 ) hold the euro acceptance unbil maturity but at the start sell the expected euro proceeds forward for dollarn at the 4 month forward rate of H.02ie. 1. What are the U.S. dollar net proceeds roceived at once from the discounted trade soceptance in altemalive 1 ? What are the U.S. dolar net proceeds recelved in four months in atematve 2 ? What is the break-ewen invesiment rate that would equalize the net U.S. dollar proceeds from both allemafives? 1. Which altomative should Nitcon Microsystems choose? NOTE: Assuene a se0-day year)

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