21 Accounting for exchange rate risk. Carson Ltd is considering a ten-year project in Hong Kong, where

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21 Accounting for exchange rate risk. Carson Ltd is considering a ten-year project in Hong Kong, where the Hong Kong dollar is tied to the US dollar. Carson Ltd uses sensitivity analysis that allows for alternative exchange rate scenarios. Why would Carson use this approach rather than using the pegged exchange rate as its exchange rate forecast in every year?

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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