2. Using the following cost and revenue information shown for TWD, Inc., determine how the costs, revenue, and cash flow would be affected by three possible exchange rate scenarios for the New Zealand dollar (NZ$): (1) NZ$ = $.60, (2) NZ$ = $55, and (3) NZ$ = $.50. (Assume U.S. sales will be unaffected by the exchange rate.) Assume that NZ$ earnings will be remitted to the U.S. parent at the end of the period. Ignore possible tax effects. Forecasted Net Cash Flows: TWD Inc. (in millions of U.S. dollars and New Zealand dollars) New Zealand Business NZ$400 200 Sales Cost of Materials Operating Expenses Interest Expense Cash flow U.S. Business $700 500 150 ..100 $50 NZ$200