1. Why forecast exchange rates Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Suppose that Franco Co. is deciding whether to invest funds in a substantial project that is located in Canada. Franco Co uses forecasted values of the Canadian dollar to help them decide whether investing in such a project would be profitable. decisions, with the goal of improving the This is an example of using exchange rate forecasting to assist with value of the MNC via influencing the 1. Why forecast exchange rates capital budgeting Consider Franco Co, the parent of a US-based multinational corporat financing in foreign currency exchange rates to assist with various business earning assessment functions. short-term investement Canada. Franco Co uses forecasted values of the Suppose that Franco Co. is deciding whether to invest funds in a sub Canadian dollar to help them decide whether investing in such a proj hedging decisions, with the goal of improving the This is an example of using exchange rate forecasting to assist with value of the MNC via influencing the 1. Why forecast exchange rates Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Suppose that Franco Co. is deciding whether to invest funds in a substantial project that is located in Canada. Franco Co uses forecasted values of the Canadian dollar to help them decide dollar value of foreign cash flows vould be profitable. the cost of capital decisions, with the goal of improving the This is an example of using exchange value of the MNC via influencing the