1) First text book sold 50,500 copies in its initial year. Publishing company expects sales to grow at the rate of 17.0 % for next three years, and by 7.0% in the fourth year. Compute total number of copies that the publisher expects to sell in year 3 and 4?
2) Exchange rate between dollars ($) and yen (Â¥) changes from $1 = Â¥200 (Â¥1 = $.005) to $1 = Â¥100 (Â¥1 = $.01), and domestic prices in both countries stay same, has dollar appreciated or depreciated, and would U.S. imports from Japan become cheaper or more expensive?
3) Assume Yates Inc., a U.S. exporter, sold the consignment of antique American muscle-cars to Japanese customer at the price of 143.5 million yen, when exchange rate was 140 yen per dollar. To close sale, Yates agreed to make the bill payable in yen, therefore agreeing to take some exchange rate risk for transaction. Terms were net 6 months. If yen fell against dollar such that one dollar would buy 154.4 yen when invoice was paid, compute dollar amount would Yates really receive after it exchanged yen for U.S. dollars?