3 Homework: Chapte... Question 2, Problem 10-... HW Score: 0%, 0 of 15 points O Points: 0 of 2 Save Part 1 of 5 Elan Pharmaceuticals. Elan Pharmaceuticals, a U.S.-based multinational pharmaceutical company is evaluating an export sale of its cholesterol-reduction drug with a prospective Indonesian distributor. The purchase would be for 1,600 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp9,420/$. translates into $169,851.38. Although not a big sale by company standards, company policy dictates that sales must be settled for at least a minimum gross margin in this case, a cash settlement of $163,000. The current 90-day forward rate is Rp9,920/$. Although this rate appeared unattractive, Elan had to contact several major banks before even finding a forward quote on the rupiah. The consensus of currency forecasters at the moment, however, is that the rupiah will continue to strengthen, possibly rising to Rp 10,160/S over the coming 90 to 120 days. Analyze the prospective sale and make a hedging recommendation How much in U.S. dollars will Elan receive in 90 days without a hedge if the expected spot rate in 90 days is assumed to be Rp9.420/8? $(Round to the nearest cent)