5 William Ltd and Niles Ltd (both from the UK) are assessing the acquisition of the same firm in Thailand and have obtained the future cash flow estimates (in Thailand’s currency, baht) from the firm. William would use its retained earnings from UK operations to acquire the subsidiary. Niles would finance the acquisition mostly with a term loan (in baht) from Thai banks. Neither firm has any other business in Thailand.

Which firm’s pound cash flows would be affected more by future changes in the value of the baht (assuming that the Thai firm is acquired)?