Part B)

Discuss the impact of local currency depreciation on a firms local currency cash outflows?

A firm expects to my E20,00 o in, one month fur mpurtrom GGreet also exrected ts receive e 255,coo fr it tne stanckid denathn & montly percentage cherges of the cur bo C that teje percente Changes re normally distrmbotee using the Value-at-rat ( VAR.) method bared on a 95 be 5 over he last to monts. Assume Confidlence reve what tme maximum one montth ios in dollarr if tre expecte elurlay next month ls-2% 2 Assume thathe current. A. $ 38,448 B.4,778 C--$1,822