Washi Co Kaplan kit question (sep 18)

Hello sir! in the question part (b) requirement it was asked to calculate a results of hedging strategy on a foreign receipt which were going to be used partly in financing a foreign project.

The exchange rate was given as
JPY per EUR 1 Spot 129.2–132.4 ARD per EUR 1 92.7–95.6

the foreign project was in ARD and the home currency of the company was JPY, so we needed to calculate the cross rates. I calculated using the mid spot rates but, in the model answer it was calculated more precisely moving between the three currencies which makes sense, and it gave two rates 0.74 of moving from ARD to JPY and 0.70 of moving from JPY to ARD. Now in the second requirement when it was asked to appraise the projects the inflows and outflows both were calculated in the model answer using the exchange rate of 0.70 shouldn’t the buying rate used for the outflows and the selling rate used for inflows. I remember when I attempted the question in technical article on international project appraisal it was done the same way outflows using the buying rate of foreign currency and inflows using the selling rates of foreign currency.