Suppose Yates Inc

question 39

Multiple Choice

Suppose Yates Inc., a U.S.exporter, sold a consignment of antique American muscle-cars to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar.In order to close the sale, Yates agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction.The terms were net 6 months.If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would Yates actually receive after it exchanged yen for U.S.dollars?

• A) $1,075,958
• B) $1,025,000
• C) $1,000,000
• D) $975,610
• E) $929,404

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Definitions:

Expiration Date

The date until which a product, such as food, medicine, or chemical, is deemed safe to use or consume.

Intramuscular Injections

A method of delivering medication deep into the muscles, allowing for faster absorption than subcutaneous injections.

Needles

Sharp, pointed instruments attached to syringes for the purpose of piercing the skin to inject substances into the body or extract fluids.

Recapped

The act of covering a needle with a cap or putting a cap back on a container to prevent contamination or exposure.