1. Assume the following information: Exchange rate of Singapore dollar in USD = 0.33 USD/SGD Exchange rate of pound in USD = 1.51 USD/GBP Exchange rate of pound in Singapore dollars = 4.7 SGD/GBP If you have 1 million USD to conduct one cycle of triangular arbitrage, what will be your profit?
2. If the average acquisition cost of a Highly Satisfied User is $1080, Average Revenue is $600/year with a UCM of 60%, how many years would Starbucks have to keep such a customer running at the Average Revenue Spend to break-even on the acquisition cost?