1. Sketch diagrammatically cash flows for Peugeot-France versus Hyundai's oper- ations in the Czech Republic. Assume that the Czech koruna is pegged in perpe- tuity to the E in anticipation of the Czech Republic becoming a member of the eurozone. 2. Assuming a 25 percent devaluation of the South Korean won, estimate how much Hyundai car sales would increase in the EU. 3. Assuming that, due to Hyundai's sales gain, French car manufacturers' losses are equally shouldered by Renault and Peugeot and that the first-year profit and loss are capitalized as a perpetuity discounted at Peugeot's cost of capital of 15 percent, what would be Peugeot's loss in market capitalization? 10 4. How could Peugeot mitigate its exposure to the South Korean won? 5. How would an annual depreciation of the Czech koruna of 2.5 percent in excess of its inflation change Peugeot's economic exposure