Hurte-Paroxysm Products, Inc. (B). Hurto-Paroxyam Products, Inc. (HP) of the United States, exports computer printers to Brab), whose curtency, the reais (BRL) has been trading at BRL3.20rUSD1:00. Exports to Brazil are currently 60,000 printors per year at the reais-0quivalent of $220 each. A rumor exists that the reais wil be devalued against the dolar to BRt3.70 within two Weeks by the Brazilan govemment. Should the devaluaton take placo, the reais is expocted to remain unchanged for another decade. Accepting this forecast as given, HP taces a poicing decision that must be made before any octual devaluation: HP may either (1) maintain the same reais price and, in eflect, sell for fewer dollars, in which case Brazkian volume will not change, or (2) maintain the same dollar price, nise the reais price in Brazil to compensate for the devaluabor, and experience a 20 dok drop in volume. Direct costs in the Uailed States are 60% of the U.S. sales price. HP also beleves that if is maintains the same price in Brazilan reais as a permanent policy, volume wit incroase at 11% per annum through year sic, costs will not change. At the end of six yoars, HP's potent expires and it will no longor export to Brazi. Aler the reais is devalued to BFL.3.70 = USD1.00, no further devaluation is expected. If HP raises the price in reas so as to maintain its dollar prioe, volume wit increase at only 4% per anmum through year sox, starting from the lower initial base of 48,000 uniss. Again, dollar costs wil not change, and at the end of six years, HP wil stop exporing to Brazi. HPS weighted average cost of capital is 15%. Given these consiberations, what do you recommend for HP's pricing policy? Justify your rocommendaton CASE 1 the saves, or 52200.60 = 5132 . Caiculate the gross profits for years 1 throwgh 6 in the following table: (Round to the noareat dollar)