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A U. S. company conducts business in the United States and Mexico. The net cash flows from Mexican operations are expected to be 5 million
A U. S. company conducts business in the United States and Mexico. The net cash flows from Mexican operations are expected to be 5 million pesos next year. The Mexican peso is valued at about $0.05. The net cash flows from U.S. operations are expected to be $2 million. To reduce the sensitivity of its net cash flows without reducing its volume of business in Mexico, the U.S. company could: purchase Mexican supplies none of the options listed decrease prices on Mexican goods. decrease its borrowed funds in Mexico. increase its borrowings in United States
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