Nikken Microsystems $($B$).$ Assume Nikken Microsystems has sold Internet servers to Telecom Espa$$a for $.$ Payment is due in

three months and will be made with a trade acceptance from Telecom Espa$$a Acceptance. The acceptance fee is $1\mathrm{.}3\%$ per annum of

the face amount of the note. This acceptance will be sold at a $4\mathrm{.}1\%$ 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 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\mathrm{.}05/.$

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

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

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

d$.$ Which alternative should Nikken Microsystems choose?

$($NOTE: Assume a $360-$day year.$)$