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Question: (Spot exchange rate) Suppose a year ago, Miller Company from Australia had inventory in Switzerland, valued at 1.5 million Swiss francs. The exchange rate for Australian dollars to Swiss francs was 1 Australian dollar 5 0.7041 Swiss franc. Today, the exchange rate is 1 Australian dollar 5 0.7573 Swiss franc. The inventory in Switzerland is still valued at 1.5 million francs. What is the Australian dollar gain or loss in inventory value as a result of the change in exchange rates?

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