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Questions 2-4. I know the answers for them what I wanna know is what is approxim

ID: 2816920 • Letter: Q

Question

Questions 2-4. I know the answers for them what I wanna know is what is approximating and depreciating. I cannot recognize which country is doing what. one eholce seem like the righe answer. Assume it is January 2010. The following table provides a forecast of ITC's a US company S dollars. Euros and forecasts for Pesos for January 2011 and Janusry 2012. Also peowi ae and Pesos during the same time periods cash receigt in Tanuary z01 January 201 Exchange Hate 2.000,000 Eu 1.5 3,000,0001Eure-2.00 Peso-s0.25 20,000,00 Pese-so.o 1 ITCs required rate of return is 10%, estimate the value of ITC's total e model for an MNC (discussed in Chapter 1) ash reccipt using the valuation $149,228,650 B $24,000,000 C. $20,578.512 D. $19.834,711 2. If the price of British Pounds goes from USA based firm which primarily imports its raw material from LEnglas A, increased S1.85/Pound to $1 35/Pound, then the net cash flows (profit) of a S1 B. decreased C. not changed much 3. If the price of Euro goes from firm which primarily sells its product in Europe will: A. increased SI 45VEuro to $1.60/ Euro, then during this period, the exports of a US based B. decreased C. not changed much a US based firm is purely domestic- with no imports or exports - is also competing with Japanese auto companies If during a given period of time, the US dollar strengthens against Japanese Il cause the net cash flow Chrysler to: A. increased B, decreased C. not changed much

Explanation / Answer

Appreciation and Depreciation