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Score: 0 of 1 pt 6 of 7 (5 complete) HW Score: 44.64%, 3.13 of 7 pts Ja Next Question P18-17 (similar to) Question Help FE Operating exposure. Copy-Cat, Inc. has signed a deal to make vintage Nissan 240-Z sports cars for the next three years. The company will build the cars in Japan and ship them to the United States for sale. The current indirect rate is ¥109.8075 per dollar. The anticipated inflation rate for parts and labor in Japan is 2.9% over the next three years, and the anticipated A overall inflation rate for Japan is 3.9% over the next three years. The expected overall inflation rate in the United States is 4.1% over the next three years. (The stated rates are on an annual basis.) If Copy-Cat plans to sell 500 cars a year at an initial price of $44,000 and the cost of production is 14,016,500, what is the annual profit in dollars for Copy-Cat? Assume it takes one year for production and all sales revenues and production costs occur at the end of the year. Is this profit rising or falling each year? Why? What is the expected sales revenue per car in dollars for Copy-Cat in year 1? (Round to the nearest cent.) Da Enter your answer in the answer box and then click Check Answer 9 parts remaining Clear All Check Answer AN 29 MacBook Pro

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RATES ARE ROUNDED TO 4 DECIMALS AND AMOUNT IS ROUNDED TO 2 DECIMALS

C w ENG 05:57 30-07-2020 99+ 31 Х DQ58 . DK DL DM DN DO DP DQ DR DS 36 37 38 39 YEAR 40 1 FIRST, WE WILL CALCULATE FORWARD RATES SPOT RATE*(1+JAPAN INFLATION RATE)/(1+ US INFLATION RATE) 109.5965 [109.8075*((1+0.039)/(1+0.041))^1] 109.3860 [109.8075*((1+0.039)/(1+0.041))^2] 109.1758 [109.8075*((1+0.039)/(1+0.041))^3] 41 2 42 3 43 44 3 REVENUES 45 46 47 1 45804 [44000*1.041^1] 37710.86 [4016500*1.029/109.5965] 8093.14 2 47681.96 [=44000*1.041^2] 38879.15 [4016500*1.029^2/109.3860] 8802.81 COSTS 49636.92 [=44000*1.041^3] 40083.67 [4016500*1.02913/109.1758] 9553.25 PROFIT 48 49 ANSWER PROFIT AT THE END OF YEAR 1 4046570 (=8093.14*500] YEAR 2 4401405 [=8802.81*500] YEAR 3 4776625 [=9553.25*500] 50 51 52 53 54 55 56 PROFITS ARE RISING BECAUSE REVENUES ARE GROWING AT 4.1% AND PRODUCTION COST AT 2.9% DESPITE THE WEAKNING DOLLAR 57 58 59 LEASING PORTFOLOQ DIR right clean YIELD bond portfolio RESI DIV POLICY SPECIFIC INV. PRO. DIV YIELD ETEMADI S13 Sh ...