Assume that you have invested $100,000 in british equities. when purchased the stock's price and the exchange rate were £50 and £0.50/$1.00 respectively. at selling time, one year after purchase, they were £60 and £0.60/$1.00. if the investor had sold £50,000 forward at the forward exchange rate of £0.55/$1.00. the dollar rate of return would be:

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?