How much air france will pay in us dollars

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Reference no: EM132780344

Air France and the Exchange Rate

You are the purchasing agent for Air France and you are planning to purchase 10 airplanes from Boeing. The planes cost $100 million each and will not be delivered for three years.

The contract states that payment will be in US dollars upon delivery. At the time the order was placed, the Euro was valued at $1.15. You anticipate the Euro will be valued at $1.45 at the time of delivery. Is this a good deal for Air France or not? Explain in terms of how much Air France will pay in US dollars at the time of delivery.

Reference no: EM132780344

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