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pls show clear calculation method ....plss (a) PHL company is a U.S. sales company are somewhat affected by the value of the New Zealand dollar
pls show clear calculation method ....plss
(a) PHL company is a U.S. sales company are somewhat affected by the value of the New Zealand dollar (NZ$), because it faces competition from New Zealand exporters. Below are the details of transactions for the PHL company throughout the year: (0) PHL has forecasted sales in the New Zealand dollar revenue invoiced in New Zealand dollars are expected to be NZ$700. (ii) Its cost of materials is estimated is $200 million from purchase of U.S. materials and NZ$100 million from the purchase of New Zealand materials. (iii) Fixed cost is estimated at $50 million. (iv) Variable operating expenses are estimated at 10 percent of total sales after include New Zealand sales which translated to a dollar amount Three scenarios and the expected value for the upcoming scenarios are as follows: Scenario Effect of the average value of NZ$ Average value of NZ$ Revenue from U.S Business (in million) $100 $200 $400 1 2 3 Depreciate by 5% $0.6398 $0.5790 $0.5240 Forecast the net cash flow for PHL Company under each three scenariosStep by Step Solution
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