Armstrong Corporation manufactures bicycle parts. The company currently has a $20,400 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,900, or modified for $10,900 and sold for $22,100. Required: 1. Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts.

Andrea cujoli is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. currently the spot price for the japanese yen is ¥129.87/$ and the 6-month forward rate is ¥128.53/$. andrea would earn a higher rate of return by buying yen and a forward contract than if she had invested her money in 6-month us treasury securities at an annual rate of 2.50%. true/false?