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NEW QUESTION: 1
A company agrees to pay JPY10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is JPY168/US$. At the time of payment the exchange rate is JPY163/US$. What is the net effect on the dollar cost of the shipment if the transaction has NOT been hedged?
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B. An increase of $1,825
C. A decrease of $1,825
D. A decrease of $5,000
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