A US multinational corporation has operations in Bolivia through which it plans to sell a new product of 500,000 cans of beans per year for the next 3 years, at a price of BOB 4 per can after incurring a variable cost of BOB 2.50 per can. The company will also incur a fixed cost of BOB 120,000 per year. The company has invested BOB 900,000 today in manufacturing equipment for its Bolivian operations, which will be depreciated to $0 at the end of its 3-year life. The corporations required rate of return is 20% and has a tax rate of 25%. The spot rate was BOB 6.91/$ before it unexpectedly changed to BOB 7.25/$.

What percent increase in Bolivian Bolivianao (BOB) (selling) price would be necessary to minimize the effect of the unexpected change in spot on the value of the Bolivian operation, assuming all else remains unchanged? (round your answer)

Group of answer choices

2.15%

1.19%

1.80%

0.75%