Question: A U S firm is expecting to pay cash flows of
A U.S. firm is expecting to pay cash flows of 15 million Egyptian pounds and 25 million Qatar rials. The current spot exchange rates are: $1 = 5.725 pounds and $1 = 3.639 rials. If these cash flows are delayed one year and the expected spot rates at that time will be $1 = 5.892 pounds and $1 = 3.988 rials, then what is the difference in dollars paid that was caused by the delay?
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