Spot rate: Starling Corporation 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 to the nearest dollar.

Question

Quizplus · Accepted Answer

To find the dollar cost of the payable, we need to convert the Mexican pesos to dollars using the given spot rate.

110 million Mexican pesos / 10.3540 pesos per dollar = $10,623,912.78

Rounding to the nearest dollar gives us a dollar cost of $10,623,913. Therefore, the correct answer is B.

Spot Rate: Starling Corporation Purchased Some Components from a Mexican