1. Estimate what cash flows in which currencies the proposal would probably yield. What is the expected U.S. dollar value that would, in the end, be received? The Space and Avionics Control Group (SAC) of Honeywell, Incorporated (U.S.) was quite frustrated in June of 1997. The cockpit retrofit proposal with Pakistan International Airlines had been under negotiation for seven months, and over the past weekend a new request had been thrown in-to accept payment in Pakistan rupee. This was against corporate policy at Honeywell, but if an exception was not made, the deal-worth $23.7 mil- lion-was most likely dead. Pakistan International Airlines (PIA) Pakistan International Airlines Corporation (PIA) was the national carrier of the Islamic Republic of Pakistan. Founded in 1954, PIA operated scheduled passenger and cargo services. The firm was 57% state owned, with the remaining 43% held by private investors internal to Pakistan. PIA's fleet was aging. Although the airline had planned a significant modernization program, recent restrictions placed on government spending by the International Monetary Fund (IMF) had killed the program. With the cancellation of the fleet modernization program, PIA now had to move fast to ensure compliance with U.S. Federal Aviation Administration (FAA) safety mandates. If it did not comply with the FAA mandates for quieter engines and upgraded avionics by June 30, 1998, PIA would be locked out of its very profitable U.S. gates. PIA would first retrofit the aircraft utilized on the long-haul flights to the United States, primarily the Boeing 747 classics.