NorthRim Inc

question 17

Multiple Choice

NorthRim Inc.(NRI) ,imports extreme condition outdoor wear and equipment from The Allofit Territories Company (ATC) located in Canada.With the steady decline of the U.S dollar against the Canadian dollar NRI is finding a continued relationship with ATC to be an increasingly difficult proposition.In response to NRI's request,ATC has proposed the following risk-sharing arrangement.First,set the current spot rate of C$1.20/$ as the base rate.As long as spot rates stay within 5% (up or down) NRI will pay at the base rate.Any rate outside of the 5% range,ATC will share equally with NRI the difference between the spot rate and the base rate.If NRI had a payable of C$100,000 due today and the current spot rate were C$1.17/$,how much does would NRI owe in U.S.dollars?

• A)$83,333
• B)$85,470
• C)$85,837
• D)$117,000

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Definitions:

Interference Effects

Refers to the phenomenon where the learning of new information or skills hampers the ability to recall or perform previously learned information or skills.

Similar Material

Objects, substances, or information that share common attributes, characteristics, or properties.

Sensory Modality

A sensory modality is a specific channel of sensory perception, such as vision, hearing, touch, taste, or smell, through which humans and other organisms experience the world.

Transfer-Appropriate Processing

A principle suggesting that memory recall is more efficient when the encoding context of information matches the retrieval context.