3 Construct a spreadsheet to compare the cash flows resulting from two plans. Under the first plan, net baht-denominated cash flows (received today) will be invested in Thailand at 15% for a one-year period, after which the baht will be converted to pounds. The expected spot rate for the baht in one year is about £0.0147 (Ben Holt’s plan). Under the second plan, net baht-denominated cash flows are converted to pounds immediately and invested in the United Kingdom for one year at 8%. For this question, assume that all baht-denominated cash flows are due today.

Does Holt’s plan seem superior in terms of pound cash flows available after one year? Compare the choice of investing the funds versus using the funds to provide needed financing to the firm.