Alpha Engineers, Inc. needs a drill to continue its operations and orders one from Mining Supplies Company for a cost of $1,500. Alpha tells the supplier that it must receive the drill by Tuesday or it will lose $5,000 (the profit for a job they have scheduled on Tuesday). The supplier agrees to have the drill to Alpha Engineers by Monday. Mining Supplies ships the drill late and it does not arrive by Tuesday. Alpha sues for breach of contract. Alpha can recover:

a) nothing because breach of contract damage awards are limited to compensatory damages only.

b) $5,000, because this amount was foreseeable as a direct result of the breach of contract, consequential damages.

c) $1,500, because they should not have to pay for the drill due to the breach.

d) None of the above.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?