Question: Suppose Company A , a U . S . exporter, sold a consignment of antique American muscle - cars to a Japanese customer at a

Suppose Company A, a U.S. exporter, sold a consignment of antique American muscle-cars to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. In order to close the sale, Company A agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction. The terms were net 6 months. If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would Company A actually receive after it exchanged yen for U.S. dollars?

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