What is the break-even exchange rate

Assignment Help Financial Management

Reference no: EM13765046

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.)

Reference no: EM13765046

Questions Cloud

Responsibility to forecast the sales : Fiat has introduced a new car in the United States called the 500. Assume that your boss has the responsibility to forecast the sales of the 500 in the United States for the year 2012. He believes that Fiat will sell 85,000 of the 500s for 2012. Supp..

Ending balance of accumulated other comprehensive income : What would Sky report as its ending balance of accumulated other comprehensive income?

Compute the macaulay duration : Compute the Macaulay duration of a ten-year 6% $1,000 bond having annual coupons and a redemption of $1,200 if the yield to maturity is 8%.

How the legal concepts in the selected case can be applied : Write an explanation of no more than 700 words about how the legal concepts in the selected case can be applied within a business managerial setting

What is the break-even exchange rate : 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. What is the break-even exchange ..

The importance of reports : Explain in your own words the importance of report writing and why you believe it is critical to the system forensics industry. Discuss the need for forensic reports when testifying as an expert witness.

Create a new class called clsbusiness layer : Create a new class called clsBusiness Layer. public static bool SendEmail string Sender, string Recipient, string bcc, string cc, string Subject, string Body

Comma between the account title : You are to prepare the missing adjusting entry. Please indicate DR (debit) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.

Suppose the current exchange rate : Suppose the current exchange rate for the Polish zloty is Z 2.76. The expected exchange rate in three years is Z 2.82. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate ..

User Account

All Pages