You want to buy industrial eth

You want to buy industrial ethanol and you have $125USD tospend. The domestic price is $0.7USD per liter. You can also buyethanol with free shipping from Canada and Mexico. The price inCanada is $0.5CD and the price in Mexico is 10 pesos per liter. Thespot US-CA exchange rate is $0.85 USD and the CA-MX exchange rateis 16₱. From what country should you buy your ethanol and how muchcan you afford to buy?


USD to Canda 0.85
Mexican Peso to Canadiandollar 16
Cross rate for USD to MexicanPeso 0.85/16
Cross rate for USD to MexicanPeso 0.053125
US Canada Mexico
Available funds in domesticcurrency            125.00 125/0.85 125/0.053125
Available funds in domesticcurrency            125.00               147.06          2,352.94
Domestic price per litre                0.70                   0.50               10.00
Litres purchased (Availablefunds/Domestic price)            178.57               294.12             235.29
As we can see the Canadain market ismost suited where the firm will be able to buy the most 294.12litre.

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