Foreign Exchange Rates

a.) Assume that Campbell generated 3% of its total revenue from Mexico in 2021 totaling $245.28 million when translated back to USD. Total revenue in Mexico is expected to increase by 3.25% from 2021 to 2022. The 2021 US$/MXN Peso exchange rate was 1 USD=23.45 MXN, and the MXN Peso is expected to depreciate against the USD by 2.5% in 2022. What is the amount of revenue in USD that Cambpell will recognize from Mexico in 2022?

b.) Assume the price of 2 liters of Coca-Cola in Denver, Colorado is $1.99 and in Mexico City it costs 45 pesos. The current foreign exchange rate is 1 USD = 25.30 MXN Pesos. Based on the purchasing power parity theory which currency may be overvalued?