Suppose your company imports computer motherboards from


Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2943 S$/US$. You have just placed an order for 24,000 motherboards at a cost to you of 239.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $200 each.

1. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. What is your profit if the exchange rate goes up by 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

3. What is your profit if the exchange rate goes down by 10 percent?

4. What is the break-even exchange rate? (Round your answer to 4 decimal places. (e.g., 32.1616))

5. What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as positive numbers.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Suppose your company imports computer motherboards from
Reference No:- TGS01035124

Expected delivery within 24 Hours