Chapter 10 Assignment For each exchange rate scenario, fill in rows (2), (3), (5), (6), (9), and (10). Finally, w in the last row for net cash flows in U.S. dollars for each exchange rate. Exchange Rate Scenario C$1$0.75 (Millions) Exchange Rate Scenario C$1$0.80 (Millions) Exchange Rate Scenario C$1$0.85 (Millions) $300 $300 $300 C$4$3.20 $303.20 CS4 - 5 C$45 $ $50 550 Sales (1) U.S. Sales (2) Canadian Sales (3) Total Sales in U.S. $ Cost of Materials and Operating Expenses (4) U.S. Cost of Materials (5) Canadian Cost of Materials (6) Total Cost of Materials in U.S.S (7) Operating Expenses Interest Expense (B) 0.5. Interest Expense (9)Canadian Interest Expense (10) Total Interest Expenses in U.S. C$150 - $50 C$150 - $120.00 $170.00 C$150 - $ 5 $60 $60 $60 $5 55 55 C510 58.00 C$10-$ C$10-$ $13.00 Cash Flows in U.S.s before Taxes $60.20 ols Suppose that Salem Co, U.S.-based MNC that both purchases supplies from Canada and sells exports in Canada, is seeking to measure 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 deals), Salem estimates it's cash flows from both the U.S., in dollars, and Canada, in Canadian dollars. These figures are summarized in the following table. Canada Sales U.S. $300 $50 C$4 C$150 $60 --Cost of materials -Operating expenses --Interest expenses Cash flows 55 C$10 $185 -SC156 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, For each exchange rate scenario, in rows (2), (3), (5), (6), (9), and (10). Finally, w in the last row for net cash Nows in US dollars for each exchange rate. Exchange Rate Scenario Exchange Rato Scenario Exchange Rate Scenario C$150.75 C$1$0.50 $1$0.85 (Millions) (Millions) (Millions) Sales (1) U.S. Sales $300 5300 $300