Your brewery produces bakersfield Bland, a low calorie, low taste beer that has

Question

Your brewery produces bakersfield Bland, a low calorie, low taste beer that has yet developed International following. In mid-march, you receive an order of 10,000 cartons from Munich, Germany for the next Oktoberfest, with payment of Euro 672,000 due in mid-september before the beer is consumed. In your opinion, the Euro will rise from its present rate of Euro 2.8000/$ to Euro 2.6500/$ by September, and you learn you can borrow Euro's for six months at 6% P.A. Note the answers are either correct or they are not their are no transpositions

If the Euro rises as expected, you will receive __________ in September

Select one:

a. $353,685

b. $253,585

c. euro652,427

d. euro380,000

Explanation / Answer

We will receive =672,000/2.65=$253,585

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