What is your profit at the current exchange rate

Assignment Help Financial Management

Reference no: EM13727723

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2875 S$/US$. You have just placed an order for 27,000 motherboards at a cost to you of 237.50 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?

2. What is your profit if the exchange rate goes up by 10 percent?

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

4. What is the break-even exchange rate?

5. What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar?

Reference no: EM13727723

Questions Cloud

Landscaping service but lee refused to pay : Clarkson and Lee did not have a contract, but Clarkson completed extensive landscaping in Lee’s yard by mistake while Lee was away on vacation. Clarkson sent Lee a bill for the landscaping service but Lee refused to pay. Determine the likely result i..

Better understanding of team culture : How can we gain a better understanding of team culture? Discuss ways in which we can use/incorporate the many differences within a team in order to promote team success.

Investment opportunity-expected to produce cash flows : Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.8 million in Year 1, €2.6 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is $1.36/€..

Evaluate the different way that zappos customer service : Evaluate the different way that Zappos creates a superior customer service

What is your profit at the current exchange rate : Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2875 S$/US$. You have just placed an order for 27,000 motherboards at a cost to you of 237.50 Singapore dollars each. You will pay for the shipment wh..

Compare and contrast the key challenges that the managers : Choose an example of a global value chain and an example of domestic value chain. Compare and contrast the key challenges that the managers would face

Analysis of the macro-environment : A PEST Analysis of the macro-environment includes a review of, Which of these initiatives would not be part of customer relationship management

Compute the effective cost of not taking the cash discount : Compute the effective cost of not taking the cash discount under the following trade credit terms:

Describe five of the major software components : List and briefly describe the two reasons given in your textbook for why developing software for wireless devices is challenging. Include and describe five (5) of the major software components associated with mobile computing in your response.

User Account

All Pages