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6. Measuring economic exposure Suppose that Salem Co, a U.S.-based MNC that both purchases supplies from Canada and selis exports in Canada, is seeking to
6. Measuring economic exposure Suppose that Salem Co, a U.S.-based MNC that both purchases supplies from Canada and selis exports in Canada, is seeking to measare the economic exposure of its cash flows. Salem wishes to analyze how its cash flows might change under different exchange rates for the Canadian dollar (the only foreign currency in which it deats). Salem estimates it's cash flows from both the U.S., in doliars, and Canada, in Canadian dollars. These flgures are summartaed in the foliowing table. Salem believes that the value of the Canadian dollar will be $0.75,$0.80, or $0.85, and seeks to analyze its cash flows under each of these scenarios. The following table shows Salem's cash flows under each of these exchange rates. Salem believes that the value of the Canadian dollar will be $0.75,$0.80, or $0.85, and seeks to analyze its cash fows under each of these scenarios The following table shows Salem's cash flows under each of these exchange rates. For each exchange rate scenario, fill in rows (2),(3),(5),(6),(9), and (10). Finaily, fin in the last row for net cash flows in U.S. doliars for each exchange rate
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