If the peso depreciates, the value of cash flows from the local sales, relative to foreign competition in local markets, will . However, if the peso appreciates, the value of the cash flows from the local sales, relative to foreign competition in local markets, will . If the peso depreciates, the cost of the firm's imported supplies, denominated in pesos, . However, if the peso appreciates, the cost of the firm's imported supplies, denominated in pesos