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Problem 12 A late penalty of 20% will apply to new answers. Intro Rockweill Inc. produces computer chips in the U.S. and sells them domestically
Problem 12 A late penalty of 20% will apply to new answers. Intro Rockweill Inc. produces computer chips in the U.S. and sells them domestically and in Canada. To measure its economic exposure, the company ran a regression analysis to explain the expected percentage change in annual U.S. dollar cash flows (PCF): E(PCF) = 0.012 + 3.6E(e) where E(et) is the expected percentage change in the exchange rate for the Canadian dollar (measured in U.S. dollars per Canadian dollar). - Attempt 6/10 for 8 pts. Part 1 If the Canadian dollar is expected to depreciate by 7%, what is the expected percentage change in annual U.S. dollar cash flows? 3+ decimals Submit
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