You are the CFO of Ohio Scales, a manufacturing company based in the United States. Your firm exports your products to Mr. Tagachi, a client in Japan. You exported a consignment with an invoice value of 5,000,000 this week on 90-days terms. That means you give 90 days' time for the importer to pay the invoice amount. Mr. Tagachi proposes to you to pay cash (in yen) right now provided he gets a 5.0000% discount. Use the following information for your calculations.

Description

Rates

Spot

111.40/$

30-days Forward

111.20/$

90-days Forward

110.00/$

180-days Forward

109.80/$

WACC of Ohio Scales

12.0000%

WACC of Mr. Tagachi

9.0000%

The proceeds from this invoice with discount = $

The proceeds from this invoice without discount = $