a. What are the U.S. dollar net proceeds received at once from the discounted trade acceptance in alternative 1?

The trade acceptance fee is: ____

Calculate the U.S. dollar proceeds received at once: (Round to two decimal places.)

b. What are the U.S. dollar net proceeds received in three months in alternative 2?

Calculate the U.S. dollar proceeds received in 3 months: (Round to two decimal places.)

c. What is the break-even investment rate that would equalize the net U.S. dollar proceeds from both alternatives?

The break-even investment rate is ____%. (Round to three decimal places.)

d. Which alternative should Nikken Microsystems choose? (Select all the choices that apply.)

Nikken Microsystems (B). Assume Nikken Microsystems has sold Internet servers to Telecom Espaa for 704,000. Payment is due in three months and will be made with a trade acceptance from Telecom Espana Acceptance The acceptance fee is 14% per annum of the face amount of the note. This acceptance will be sold at a 3.7% per annum discount Also assume that Nikken Microsystems prefers to receive U S dollars rather than euros for the trade transaction. It is considering two alternatives: 1) sell the acceptance for euros at once and convert the euros immediately to U.S. dollars at the spot rate of exchange of $1.01/ or 2) hold the euro acceptance until maturity but at the start sell the expected euro proceeds forward for dollars at the 3-month forward rate of $1.03/