2) A Canadian company sold 1000 computers for the priceof $1000 CND to an Indian company when exchange ratewas 1 CND= 65 R. invoice is due after 90 days and whenIndian company is about to pay the invoice, exchange rate s1 CND= 75 R. How much is the loss for Indian company?What are the methods to avoid this risk?

The risk of fluctuating exchange rates across currencies that could have an impact on a company's…

Answered: 1 CND= 75 R. How much is the loss for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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1 CND= 75 R. How much is the loss for Indian company? What are the methods to avoid this risk?