1) North is a US company based in Denver, with subsidiaries in Turkey and India. North is expected to generate US$5 mn from its US operations each year in the next 6 years, TL7 mn from its Turkey operations each year in the next 6 years and TL INR8 mn from India operations in the next 6 years. Note that USDTL IS TL13 in the first year and TL is expected to depreciate by 10% each year in the next 6 years. Meanwhile INRUSD is expected stay flat at 0.017 for the next 6 years. Calculate the cashflow of North in the next 6 years. 2) Guney is a company based in Europe and is considering investment opportunities in US and Turkey that could effect the value of the company. Please analyze each investment below to see if it would create any exchange rate uncertainty on Guney's expected cashflows and how? 1- A licensing deal to sell technology to a US company for US$5 mn, the payment is invoiced in dollars. ii- Acquisition of a large firm in Turkey iii- Start importing the major raw material from Turkey in TL at a lower cost instead of a company in Europe. iv- Export to US in USD. 3) Assume TL appreciated by 10%. Explain how this would impact Turkey's CA deficit? 4) Dunya A.S. based in Turkey, makes hand bags and sells them in the US and Europe and competes with European Laurent and US Joan in both markets. Dunya prices a hangbag at TL400, Laurent at Eur 60 and Joan at US$60. 1 USD= 14TL 1 Euro= 20TL 1. Which company is more competitive in the US? Why? 2- If Euro value fell to 0.98 vs USD, which company would be more competitive in Europe? Why