AC Co. is a U.S. company with sales to Australia amounting to A$10 million. Its cost of materials attributable to the purchase of Australian goods is A$8 million. Its interest expense on Australian loans is A$5 million. Given these exact figures above, the dollar value of ACs earnings before interest and taxes would _______ if the Australian dollar appreciates; the dollar value of ACs cash flows would _______ if the Australian Dollar appreciates.

A. Increase; Increase

B. Decrease; Increase

C. Decrease; Decrease

D. Increase; Decrease

E. Increase; be unaffected