Problem 2 Intro Thornton Industries is a U.S. firms with operations in France. The company expects the following cash flows: U.S. sales of $140 million U.S. cost of goods sold of $60 million U.S. interest expenses of $15 million Selling, general and administrative expenses of $30 million French sales of 80 million French cost of goods sold of 18 million French interest expenses of 2 million The company expects the euro exchange rate to be one of three possible values: $0.95 per euro, $1.05 per euro, or $1.15 per euro. Part 1 | Attempt 1/10 for 10 pts. What is the cash flow before taxes if the exchange rate turns out to be $1.15 per euro (in $ million)? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. What could the company do to reduce its economic exposure to the euro? Check all that apply: Restructure debt to increase debt payments in euros Increase sales in France Increase imports from France Hedge its euro transactions Part 3 | Attempt 1/10 for 10 pts. The company decided to restructure its business to reduce its exposure to the euro exchange rate. In particular, the company decided to do the following: Renegotiate some export contracts to invoice them in dollars instead of euros, increasing dollar sales to $169 million and decreasing euro sales to 52 million. Import more supplies from France, increasing French cost of goods sold to 38 million and lowering U.S. cost of goods sold to $39 million. Borrow more euros to pay off some dollar debt, increasing euro interest expenses to 12 milion and reducing dollar interest expenses to $4.5 million. What is the cash flow before taxes if the exchange rate turns out to be $1.15 per euro (in $ million)? 0+ decimals Submit