$.$ Impact of a Weak Currency on Feasibility of DFI.

Packer, Inc., a U$.$S$.$ producer of computer disks,

plans to establish a subsidiary in Mexico in order to

penetrate the Mexican market. Packer$$s executives

believe that the Mexican peso$$s value is relatively

strong and will weaken against the dollar over

time. If their expectations about the peso$$s value

are correct, how will this affect the feasibility of the

project? Explain.