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Hello, I am looking for someone to write an article on USA SuperCars Revenue Risk Analysis Report. It needs to be at least 2750 words.

Hello, I am looking for someone to write an article on USA SuperCars Revenue Risk Analysis Report. It needs to be at least 2750 words. What is the bank’s Value-at-Risk and what is the bank’s expected profit?16

USASuperCars signed a contract to sell 27 cars to five different countries including the USA. It was agreed that the other four countries would pay the revenue in their local currencies at the prevailing exchange rate after the delivery. HSBC however offered an offer of $2,150,00 for the purchase of the contract. The objective of the report was to conduct an analysis of risks to the company and the bank and profitability. Exchange rate data from the Bank of America was used for all the analysis. A recommendation would thus be made on whether USASuoerCars should accept the offer from HSBC.

Various statistics were used in achieving this objective. The expected revenue was obtained as $ 44,218,388 and the standard deviation as $ 33,022.14. The probabilities of the mean exceeding $2,200,000 and 2,225,000 are 100% and 100% respectively. This shows that there are high chances of exceeding the mean revenue. The banks value at risk at the 5th percentile was $ and the profit was $ .

USASuperCars, which is based in US, markets custom built and high-end expensive cars. These sports cars are meant for the rich in the society. The company signed an agreement to sell 27 cars to five countries across four continents. the payment was to be paid after delivery in the local currency. Since the payments were to be made at a leter date and in local buyers local currency, it meant that there would be uncertainties in the final revenue that is expected at the contract. The exchange rates were provided by the Bank of America for the twelve months that followed so as to ensure a proper analysis.

HSBC offered $ 2,150,000 to USASuperCars in exchange for the all the revenue in the local currencies. The purpose of the report was to find the probabilities of getting revenue in excess or under the expected value.

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