Question 22 5 pts Suppose you wish to limit your Economic Exposure in the scenario given above. Which of the following would be LEAST effective at limiting your exposure? Penetrating the Mauritian sales market Looking for counties other than Mauritius to source production inputs Borrowing MUR to fund Capital Investment Sourcing debt in the US to fund Capital Investment Use the following to answer questions 20-22 Suppose your firm does business in Mauritius. Business done in Mauritius is conducted in Mauritian Rupee (MUR). The spot rate of the Mauritian Rupee is USD.037/MUR. Some expect this exchange rate to hold into the next year. Next year's projected cash flows follow: Country US (USD millions) Mauritius (MUR millions) Sales 83.0 165.0 COGS 5.9 871.5 Expenses 31.0 51.5 Interest 6.5 0 Question 20 5 pts Your firm's Economic Exposure is to a(an) MUR. MW Question 21 5 pts Suppose you, however, believe that during the course of the upcoming year, the MUR will APPRECIATE by 10%. If this indeed happens, by approximately how much will your firm's USD cash flow change from initial projections? - USD 28.05 Million - USD 2.80 Million + USD 28.05 Million It won't change at all Question 22 5 pts Suppose you wish to limit your Economic Exposure in the scenario given above. Which of the following would be LEAST effective at limiting your exposure? Penetrating the Mauritian sales market Looking for counties other than Mauritius to source production inputs Borrowing MUR to fund Capital Investment Sourcing debt in the US to fund Capital Investment Use the following to answer questions 20-22 Suppose your firm does business in Mauritius. Business done in Mauritius is conducted in Mauritian Rupee (MUR). The spot rate of the Mauritian Rupee is USD.037/MUR. Some expect this exchange rate to hold into the next year. Next year's projected cash flows follow: Country US (USD millions) Mauritius (MUR millions) Sales 83.0 165.0 COGS 5.9 871.5 Expenses 31.0 51.5 Interest 6.5 0 Question 20 5 pts Your firm's Economic Exposure is to a(an) MUR. MW Question 21 5 pts Suppose you, however, believe that during the course of the upcoming year, the MUR will APPRECIATE by 10%. If this indeed happens, by approximately how much will your firm's USD cash flow change from initial projections? - USD 28.05 Million - USD 2.80 Million + USD 28.05 Million It won't change at all