Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Franco Co is deciding whether to deposit cash at a bank in the eurozone. The possible appreciation, or depreciation, of the euro affects the number of dollars the MNC ultimately receives. Franco Co uses a forecasted exchange rate of the euro to help them make a decision. decisions, with the goal of improving the decis This is an example of using exchange rate forecasting to assist with value of the MNC via influencing the financing in foreign currency short-term investement capital budgeting orporati exchange rates to short-term investment hedging or depreciation, of e eurozo ced exc hem make a decis earning assessment t with decisions, ng whether to deposit cash at a bank in the eurozone. The possible app cimately receives. F the cost of capital be rate of the eur dollar value of foreign cash flows of using exchange ia influencing the