Sakura Energy, a Malaysian brent oil trading company, would like to export 100,000 barrels of brent oil with the current price of USD50 per barrel to an importer in Taiwan.Determine how much proceeds (in RM) will be received by Sakura Energy. Question 4The following are the prices quoted by a forex counter of CIMC Bank in Malaysia:We buy_4.1060We sell1 United States Dollar (USD)1 Great British Pound (GBP)1 Singapore Dollar (SGD)100 Taiwanese Dollar (TWD)100 Hongkong Dollar (HKD)4.24105.10405.32402.94003.087012.5013.9851.8054.80

International trade refers to the exchange of goods and services for money outside the domestic…

Sakura Energy, a Malaysian brent oil trading company, would like to export 100,000 barrels of brent oil with the current price of USD50 per barrel to an importer in Taiwan. Determine how much proceeds (in RM) will be received by Sakura Energy.

Sakura Energy, a Malaysian brent oil trading company, would like to export 100,000 barrels of brent oil with the current price of USD50 per barrel to an importer in Taiwan. Determine how much proceeds (in RM) will be received by Sakura Energy.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 17RQ: Does a higher inflation rate in an economy, other things being equal, affect the exchange rate of...

See similar textbooks

Related questions

Q: Concurris Prototyping is committed to using the newest and finest equipment in its labs.…

A: The annual worth is the net of the relative multitude of benefits and costs caused more than a…

Q: On July 1, 2012, Ms. C will need Php1, 000. Assume that the annual effective interest rate equals…

A: Given information, Future value on July 1, 2012: Php1,000 Time period (t): 3.75 years Annual…

Q: Five years from now, Php. 1.2M will be needed to replace a machine. To accumulate this amount, a…

A: We are going to use Present value of future cash flow concept to answer this question. If we have a…

Q: Nelson, Inc. is considering investing in new and more efficient equipment The equipment has 10-year…

A: Given, First cost= $800,000 Annual cost = $40,000, increases $20,000 per year Equipment life = 10…

Q: Engineering Economics Two stamping machines are under consideration for purchase by a metal…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: The packing cooling tower that cools condensing water for a power plant progressively detcriorates…

A: Answer in step 2.

Q: A product generates an income of P7300per month and an operating expense of P3000 per month. The…

A: Year Cashflow 0 -15000 1 4300 2 4300 3 4300 4 4300 5 4300 6 4300 7 4300 8 4300 ……

Q: 7-4.In a cold storage plant, it is desired to determine whether to use insulation two inches thick…

A: The cost without insulation is 96 per square foot per year. The cost of two-inch insulation is…

Q: An Oman multinational company is buying an asset from a Britain company for 1 million GBP and the…

A: Option Premium after 3 months = OMR 0.5187/GBP Strike Price after 3 months = OMR 0.5391/GBP Total…

Q: The Toro Company is expanding its El Paso, Texas plastic molding plant as it continues to transfer…

Q: Q1: Three mutually exclusive alternatives X, Y, and Z are being considered as a permanent solution…

A: ANSWER Three mutually exclusives alternative X,Y,Z

Q: company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional…

A: 1) Determine the IRR. IRR => (n√CFn/I)-1 Here, CFn = cash flow of time n = 1.65 million I =…

Q: US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

A: Present value refers to the worth of a sum of money that one is going to receive in the future…

Q: XYZ Inc plans to construct an additional building at the end of 10 years for for an estimated cost…

A: Time period = 10 years Estimated cost after 10 years = P5,000,000 Interest rate = 13% = 0.13…

Q: Detrich Products is planning to upgrade an aging manufacturing operation 5 years from now at a cost…

A: The cost at the fourth year (C) is $100,000. Interest rate (i) is 10%. Time period (n) is 4 years.…

Q: Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed…

A: Future worth can be calculated as follows:

Q: A supermarket is planning on piloting a self-checkout system in one of its stores. It estimates that…

A: The payback period is calculated by dividing the investment with the savings.Thus, payback =…

Q: The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource…

A: Present worth:- The term "present value" refers to the value that a monetary amount currently has as…

Q: Concurris Prototyping is committed to using the newest and finest equipment in its labs.…

A: Consider the above given that : Equipment Current Proposed Original purchase price, $…

Q: Automobiles of the future will most likely be manufactured largely with carbon fibers made from…

A: The time period can be denoted as ‘n’, and interest rate can be denoted as ‘i’.

Q: CB Electronix must buy a piece of equipment to place electronic components on the printed circuit…

A: Comparing the 2nd option with the 1st option, IRR (r) of the 2nd option is - 140000/r × (1-1/(1+r)10…

Q: EncryptCo has two possible plans for accumulating money for capital projects. One plan is to save…

A: Compounding basically refers to an asset's ability to generate returns that are then reinvested or…

Q: ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: Given: The estimated cost of own building at end of 10 years=P15,000,000 Fund earning=13% The…

Q: The first cost of a certain piece of equipment is $50,000. It will have an annual operating cost of…

A: Capitalized cost is a cost that is incurred with the purchase of a fixed asset and expected to…

Q: Draw cash flow diagrams with symbols. Show your work using conversion factor notations. You need…

A: Given : Vendor R Initial Cost = -75,000 $ Annual Keep up = -27,000$ Salvage Value = 0 $ Estimated…

Q: A construction firm is considering purchasing equipment that will reduce cost by P40,000. The…

A: C option . No is the right answer. Pls see below. Cash flows from year 1 to 6 are savings of 40000…

Q: Watkins Action Solutions ordered $7 million worth of seamless tubes for manufacturing their high…

A: Annual revenue needed can be calculated as follows:

Q: Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts…

A: The uniform annual sales volume of the product for Nadine to be indifferent between the contracts…

Q: Al Bayan Company's Average Accounts Receivables is OMR 220,000 and total Sales is OMR 800,000. The…

A: Receivable collection period can be calculated by the following formula RCP = average account…

Q: The engineering team at Manuel's Manufacturing. Inc., is planning to purchase an enterprise resource…

Q: For a new product, the marketing department predicts that sales are expected to be 100,000 units in…

A: We are going to find the Present value of Option A and Option B to answer this question correctly.

Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…

A: The measure that depicts uniform costs of estimated receipts and expenditure of the project life…

Q: Maintenance costs for a new system are estimated to be $250,000 in year 3 and $175,000/year in years…

A: Maintenance costs are necessary for upkeep. Any cost incurred by an individual or business to keep…

Q: An equipment is bought for $9,000 and sold at the end of its service life for $800. If the service…

A: Given equipment cost = 9000 $ Time = 10 years MARR = 10 % Salvage value = 800 $ Therefore the…

Q: The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water…

A: Annual worth can be calculated as follows:

Q: ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per…

A: The effective annual interest rate is the real interest rate on credit since it considers the…

Q: A manufacturer has a contract to produce 2k units of a certain device. The device can be made by…

A: Total production=2000 units Two options available; Calculating cost:

Q: What would be the annual worth on this investment?

A: Given intial cost = 100000 $ Annual savings = 60000 $ Salvage value = 20000$ Annual expense = 10000…

Q: Cisco, Inc. has a proposal from the Engineering Planning Division to invest some of the Cisco…

A: The yearly cost of owning, operating, and maintaining an asset throughout its full life cycle is…

Q: Ghj plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: Profit and loss (in $1000 units) associated with the sale of a vision-guided machine tool loading…

A: a. Table 1 shows the cash flow. Cumulative cash (CC) flow can be calculated using the following…

Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5years.…

A: Let P be the annual savings with MARR(minimum attractive rate of return) as 15% so:…

Q: Operating and repair costs for equipment will be $15,000 per year for a 3-year warranty period,…

A: Initial investment = $300000 First three year operating cost = $15000 per year After the 3rd year…

Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

A: Answer in step 2

Q: US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

A: here we calculate the amount company made annually by using the given information , so the…

Q: A large lithium-ion phosphate battery pack for an industrial application is expected to save $20,000…

A: Investment: It is a fundamental piece of abundance creation, which causes you beat expansion to…

Q: The Malaysian Airlines System (MAS) is facing heavy challenges due to the pandemic of COVID-19 that…

A: It is given that , Annual Worth of cost for older machine is 70,000 for 3 years Annual Worth of…

Q: ABC enterprise demands 3,400 pieces of metal sheets manufactured by XYZ Metals. With the manual…

A: We are going to use comparison techniques to answer this question.

Q: Virgin Galactic is considering two materials for certain parts in a re-useable space vehicle: carbon…

A: The formula of present worth is as follows: Here, F = future accumulated amount, n = number of…

Question

Sakura Energy, a Malaysian brent oil trading company, would like to export 100,000 barrels of brent oil with the current price of USD50 per barrel to an importer in Taiwan.
Determine how much proceeds (in RM) will be received by Sakura Energy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1.

VIEW

Step 2.

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Does a higher inflation rate in an economy, other things being equal, affect the exchange rate of its currency? If so, how?
If 1 US ($) is worth 1.5 (E) British Pound sterling, then that suggests that the US $ is Weaker O Stronger Appreciating Strengthening
2. Analyze the data from China, Japan, Switzerland, Indonesia, Ukraine, and Taiwan (6 countries), and fill in the table as follow showing overvalued and undervalued currencies. (10%) Write a conclusion stating why PPP doesn't hold true according to the actual data. (10%) Country Local dollar Implied PPP Actual of the dollar price 1 United States China Indonesia Switzerland Ukraine Taiwan 5 20 30000 6.5 54 69 exchange rate 1 6.8 14000 0.9 28 30 Under/over against the dollar 0% valuation
At the end of 2021 , the Federal Reserve took an inventory of its foreign currency reserves. Since the previous year, the following had change Currency Yen (+1-) Change (millions) -26.17 -22.80 Yuan US Dollars 47.57 92.04 Rupees Riyals Pesos 85.61 38.33 Shekels |-30.87 How much did NCO change during this time period? Round to two (2) decimal places
25 The exchange rate between the euro (€) and the US dollar ($) is $1,20 per euro. If an American tourist in Paris purchases a good valued at 60 euros, then in his own currency this would cost: a) $50 4 b) $72 c) $48 d) $720
62. Which two of the following would tend to increase the supply of sterling on the foreign exchange market? Select one: a. Increased demand for imports into the UK b. Reduction in aid by the UK government to developing economies O c. Increased inflows of foreign currencies into sterling deposit accounts in the UK d. Increased demand for exports from the UK
The demand for Australian dollars in the foreign exchange market equals 12000 - 2000E and the supply of Australian dollars in the foreign exchange market equals 3000 + 3000E, where E is the nominal exchange rate expressed in yen per Australian dollar. If the Australian dollar is fixed at 3 yen per Australian dollar, then to maintain this fixed rate, what is the required change in the Reserve Bank of Australia's holdings of yen? O decrease by 18000 yen decrease by 2000 yen O increase by 2000 yen O increase by 18000 yen
QUESTION 19 If the Canadian dollar is strengthening, then: O it has been unpegged from other currencies. it has appreciated in terms of other currencies, which will likely lead to increased exports from Canada. O Canada has purchasing power parity. it has appreciated in terms of other currencies, which will likely lead to increased imports to Canada
Thomas , a currency trader in East African Community, has ksh 400,000. He wishes to assess if triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the cross exchange rate and triangular arbitrage profit. Explain your answer.
a) Using the following information, determine each one of the theoretical Exchange Rates (E.R.) according to International Fisher Effect. b) Show how Money Market Arbitrage could be done assuming that the loan is 1,000 units of the currency of the country where the loan is contracted. Determine the profit in the currency in which the loan was contracted. ΜARKET ΜARKET E.R. E.R. COUNTRY CURRENCY INTEREST Dec-01 Dec-02 Dec-02 Mexico MXP 12 % 19.56 20.15 Turkey TRY (Lira) 6 % 5.9419 6.07673 Australia AUD 4 % 1.7759 1.81183 Jаpan JPY 8 % 105.866 113.978 United GBP 5 % 0.5991 0.617849 Kingdom (UK) South Korea KRW (Won) 9% 1,658.62 1,793.37 Canada CAD 5 % 1.3736 1.4942 U.S.A.. USD 3%
Otondo , a currency trader in East African Community, has ksh 400,000. He wishes to assess his triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the results. Explain your results
15. Assume the Canadian dolaris qual to $0.8 and the Prvin ol" i equal to S0.35, The value of the Peruvian sol in Canadian dollar is a) about 3621 Canadian dollars b) about 3977 Canadian dollas c) about 2.6 Canadian dollas d) about 2.51 Canadian dollars