Question: Please provide equation and final answer to the highlighted, and show work. Elan Pharmaceuticals, a U.S.-based multinational pharmaceutical company, is evaluating an export sale of

Please provide equation and final answer to the highlighted, and show work.

Please provide equation and final answer to the highlighted, and show work.

Elan Pharmaceuticals, a U.S.-based multinational pharmaceutical company, is evaluating an export sale of its cholesterol-reduction drug with a prospective Indonesian distributor. The purchase would be for 1,650 million Indonesian rupiah (Rp), which at the current spot exchange rate of Rp 9,450/S, translates into nearly $175,000. 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 $168,000. The current 90 day forward rate is Rp9,950/S. 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 hold relatively steady, possibly falling to Rp 9,400/S over the

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