Ho Problem 10-5 (algorithmic) Question Help UE Elan Pharmaceuticals. Elan Pharmaceuticals, a US-based multinational pharmaceutical company is evaluating an export sale of its cholesterol reduction drug with a prospective Indonesian distributor The purchase would be for 1.670 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp9,500/5, translates into $175,789.47. 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 $169,000. The current 90-day forward rate is Rp9.920/5. 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 Rp10.190/S over the coming 90 to 120 days. Analyze the prospective sale and make a hedging recommendation Hame: How much in US dollars will Elan receive in 90 days without a hedge if the expected spot rate in 90 days is assumed to be Rp9,500/5? Due: Last w Curren (Round to the nearest cent.)