weeks by the Brazilian government. Should the devaluation take place, the reais is expected to remain unchanged for another decade. volume. Direct costs in the United States are 60% of the U.S. sales price. CASE 1 the sales, or $2000.60=$120. Calculate the gross profits for years 1 through 6 in the following table: (Round to the nearest dollar.) If HP's weighted average cost of capital is 12%, what is the cumulative present value of the firm's gross margin? \$ (Round to the nearest dollar.) CASE 2 weeks by the Brazilian government. Should the devaluation take place, the reais is expected to remain unchanged for another decade. volume. Direct costs in the United States are 60% of the U.S. sales price. CASE 2 nearest dollar.) If HP's weighted average cost of capital is 12%, what is the cumulative present value of the firm's gross margin? (Round to the nearest dollar.) What should be HP's pricing policy? (Select from the drop-down menu.) is better because it yields higher profits