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Measuring Operating Exposure: Ganado Germany Case 2 : Volume Increases Other Variables Remain Constant Assume that, following the depreciation in the euro, sales within Europe

Measuring Operating Exposure: Ganado Germany Case 2: Volume IncreasesOther Variables Remain Constant Assume that, following the depreciation in the euro, sales within Europe increase by 40%, to 1,400,000 units (all other variables remain constant)The depreciation has now made German-made telecom components more competitive with imports Additionally, export volume increases because German-made components are now cheaper in countries whose currencies have not weakened The sales price is kept constant in euro terms because management of Ganado Germany has not observed any change in local German operating costs and because it sees an opportunity to increase market share Ganado Germany's net income rises to 2,107,950, and operating cash flows the first year rise to 2,504,553 after a one-time increase in net working capital of 203,397Operating cash flow is 2,707,950 per year for the following four years The present value of Ganado Germany has risen by $1,637,621 over baseline to $8,900,601\table[[Assumptions,2014,2015,2016,2017,2018],[Sales volume (units),1,000,000,1,000,000,1,000,000,1,000,000,1,000,000
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