Starling Corp. purchased some components from a Mexican manufacturer. They have to pay 110 million Mexican Pesos for the goods today. The spot rate today is MP10.3540/$. What is the dollar cost of this payable? (Round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

To calculate the dollar cost of this payable, we need to convert the Mexican Pesos to US dollars using the given spot rate.

1 Mexican Peso (MP) is equal to $1/MP10.3540.
Therefore, 110 million Mexican Pesos is equal to:
110,000,000 MP * ($1/MP10.3540) = $10,623,913

So the dollar cost of this payable is $10,623,913, which is closest to answer B.