CytoSport, Inc. and Nutrex Inc. are firms headquartered in the United States. CytoSport has a large subsidiary in Mexico that does all of its business in Mexican pesos and remits positive earnings $($in pesos$)$ to CytoSport every year. Nutrex purchases a large amount of its supplies invoiced in pesos from Mexican firms, and all of its sales are to U$.$S$.$ customers and are invoiced in dollars. Suppose that investors expect the peso to depreciate substantially against the dollar in the near future.

Assuming investors use the present value of expected future cash flows to value each firm, which of the following statements is true?

Group of answer choices

None of the other statements are true

Expected depreciation of the peso $($against the dollar$)$ will have a positive effect on the value $($in dollars$)$ of Nutrex.

Expected depreciation of the peso $($against the dollar$)$ will have a negative effect on the value $($in dollars$)$ of both firms.

Expected depreciation of the peso $($against the dollar$)$ will have a positive effect on the value $($in dollars$)$ of CytoSport.