SHOW FORMULAS IN EXCEL PLEASE

QUESTION #5 - Foreign Exchange Rate Primo Caf has long relationship with Techno-Gadgets Limited to produce the temperature and pressure gauges that go into the Caffissime. However, Techno-Gadgets recently underwent an ownership change and since then, the quality of their products has declined. lise. Prime's CEO and founder, is in negotiations with Techno-Gadgets to resolve the issue, but, in the meantime, you have been tasked with looking for new potential suppliers. Your search has led you to two overseas companies: Tokyo Teshtonics Inc. and Allesgute Engineering GmbH. Tokyo Tectonics Inc. is losated in Japan and quotes you price of 1,600 (1,600 Japanese Yen) per gauge. Allesgute Engineering GmbH is located in Germany and quotes you a price of 18.00 (18 Euro) per gauge. To order to help determine which company has the best cost structure, you have collected the following information. Current USD/JPY exchange rate: $1 = 110 Expected USD/JPY exchange rate in six months: $1 = 90 Current USD/EUR exchange rate: $1 = 0.80 Expected USD/EUR exchange rate in six months: $1 = 1.10 Additional Costs Shipping to port of export Ocean freight Duties on imports Transportation to warehouse Tokyo Tectonics Inc. $ 4.25 $ 30.25 $ 1.50 $ 3.75 Allesgute Engineering GmbH $ 5.30 $ 27.50 $ 1.80 $ 3.00 Marco wants to move quickly and lock up a contract with Allesgute Engineering immediately. lise is inclined to give Techno-Gadgets six months to resolve its issues. At that point, she is interested in inking a deal with Tokyo Tectonics. Apply exchange rate calculations as presented in class to complete the question below. Complete all calculations in the excel file that you will upload with your exam. 1. Calculate the current and future total cost for each supplier in USD. 2. Marco wants a recommendation on what Primo Caf should do. Given the information above- and what you know about the product you are sourcing - what would you recommend? Why? Tokyo Tectonics Current Future Allesgute Engineering Current Future USD/foreign currency Price Price Shipping to port of export Ocean freight Duties on imports Transportation to warehouse Total Cost