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Crane Corporation’s recent sale to a firm in Mexico produced revenues of 14,370,000 Mexican pesos (MPs)....

Crane Corporation’s recent sale to a firm in Mexico produced revenues of 14,370,000 Mexican pesos (MPs). If the firm sold the pesos to its bank and was credited with $1,207,080.00, what was the spot rate at which the pesos were converted? (Round answer to 4 decimal places, e.g. 15.2578.)

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Answer #1

The spot rate at which the pesos were converted is computed as follows:

= $ 1,207,080 / 14,370,000 MP

= $ 0.084 / MP

This can also be expressed as

= MP 11.9048 / $

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