3. XYZ Inc. a US based company expects to receive 10 million euros in each of the next 10 years. At the same time the company needs to obtain 2 million Mexican pesos in each of the next 10 years. The euro exchange rate is presently valued at $1.48 and is expected to depreciate by 3 percent each year over time. The peso is valued at $0.11 and is expected to depreciate by 2.5 percent each year over time. Do you think that the exchange rate movements will have a favorable or unfavorable effect on XYZ Inc. Justify your answer with appropriate example.