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.

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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