Williams Corp. is considering signing contracts that will obligate the firm to purchase 100000 Swiss Francs worth of computer equipment at the end of each calendar quarter for the next 2 years. Williams is also signing a contract with a local high school that will purchase this equipment from Williams at a price of $89000 (U.S.) per quarter. What would Williams' profit or loss be over the life of the contract (8 quarters) if the "In US Dollar" exchange rate is $0.79 over the life of the contract

Given that at the end of each quarter, William corporation will purchase 100,000 Swiss francs worth of computer equipment for next 2 years. A local high school will still purchase this computer equipment at $89,000 each quarter for the next 2 years.

This means, we have the following:

Cost of purchase = 100,000 * number of quaters = 100,000 * 8 = 800,000

Convert to USD at an exchange rate of $0.79 = 800,000 * 0.79 = $632,000

Cost of purchase in USD = $632,000

Also, find the revenue generated after selling the computer equipments to the high school.

Revenue generated = $89,000 * number of quaters = $89,000 * 8 = $712,000

Williams' profit or loss would be calculated using the following:

Profit(loss) = Revenue generated - Cost of purchase

= $712,000 - $632,000

= $80,000

Since we have a positive value, Williams would make a profit of $80,000 through out the life of the contract.