The exchange rate is:
Select one:
a. a tax imposed on members of a stock exchange.
b. a price for raw materials that are imported.
c. the value of our currency in terms of another currency
d. a term used in shipping to describe how fast a ship can get into and out of port.

the correct answer is c. the value of our currency in terms of another currency

Explanation:

an exchange rate is the value of a one currency in terms of another nations currency. eg: a US 1 dollar equals Euro 1.2!

The currency rates are primarily decided by the supply and demand for a currency and these rates are useful in many instances such as international trade and investing.

Explanation:

1.  NPV = -1,700,000 + 2,055,000 * (1-0.008) / 1.02

          = $298,588.24

2. Yes order should be fulfilled

3. Break-even probability = 1 - 1,700,000 * 1.02 /2,055,000

                                 = 1 - 0.843795

                                      15.62%