Scenario : The company uses the spot rate on April st to convert its sales revenue in MYR to US dollars.

Scenario : On January st the company uses that days forward rate today to lock in a foreign exchange rate for its expected million MYR in sales. This means the company agreed to exchange million MYR using the forward rate on January st when April arrives.

Scenario: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed.

Specifically, you must address the following rubric criteria:

Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.