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Ivanhoe Autos has contracted with an Indian software firm for design software. The payment of 26,000,000...

Ivanhoe Autos has contracted with an Indian software firm for design software. The payment of 26,000,000 rupees (Rs) is due in 30 days. What is the cost in dollars if the 30-day forward rate is Rs65.00/$.

Cost of software $

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Answer #1

Payment = 26000000, Forward Rate = 65 / $

Cost of Software in $ = 26000000 / 65 = $ 400000

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