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Severus Co. has to pay 5 million Canadian dollars for supplies it recently received from Canada. Today, the Canadian dollar has appreciated by 2 percent
Severus Co. has to pay 5 million Canadian dollars for supplies it recently received from Canada. Today, the Canadian dollar has appreciated by 2 percent against the U.S. dollar. Severus has determined that whenever the Canadian dollar appreciates against the U.S. dollar by more than 1 percent, it experiences a reversal of 40 percent ofthat change on the following day. Based on this information, the Canadian dollar is expected to tomorrow, and Severus would prefer to make payment depreciate by .8 percent; today depreciate by 8 percent; tomorrow appreciate by .8 percent; today appreciate by 8 percent; tomorrow
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