Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Williams Corp. is considering signing contracts that will obligate the firm to purchase 105000 Swiss Francs worth of computer equipment at the end of each calendar quarter for the next 2 years. Williams is also signing a contract with a local high school that will purchase this equipment from Williams at a price of $80000 (U.S.) per quarter. What would Williams' profit or loss be over the life of the contract (8 quarters) if the "In US Dollar" exchange rate is $0.82 over the life of the contract?

Sagot :

Based on the information given, Williams' loss be over the life of the contract will be $48800

The first thing to do is to calculate the profit or loss for each quarter. This will be:

= 80000 - (105000 × 0.82)

= 80000 - 86100

= -6100

The number of quarters over the life is given as 8 quarters. Therefore, the loss over the life of the contract will be:

= 8 × -$6100

= $-48800

Therefore, the loss will be $48800

Learn more about contracts on:

https://brainly.com/question/5746834

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.