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Cargill is a U.S. firms producing cattle feed. It imports soy beans from Brazil and also sell some products there. The company expects the following
Cargill is a U.S. firms producing cattle feed. It imports soy beans from Brazil and also sell some products there. The company expects the following cash flows: U.S. sales of $400 million U.S. cost of goods sold of $80 million U.S. interest expenses of $30 million Selling, general and administrative expenses of $20 million Brazilian sales of R$160 million Brazilian cost of goods sold of R$680 million Brazilian interest expenses of R$10 million The company expects the Brazilian real exchange rate to take on one of three possible values: $0.2 per real, $0.22 per real, or $0.24 per real. Part 1 Attempt 1/10 for 9 pts. What is the cash flow before taxes if the exchange rate turns out to be $0.2 per euro (in $ million)? 0+ decima Submit Part 2 Attempt 1/10 for 9 pts. What is the cash flow before taxes if the exchange rate turns out to be $0.22 per euro (in $ million)? 0+ decima Submit Part 3 - Attempt 1/10 for 9 pts. What is the cash flow before taxes if the exchange rate turns out to be $0.24 per euro (in $ million)? 0+ decima Submit
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