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 it to hold into 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

Suppose you, however, believe the Mauritian Rupee will DEPRECIATE against the USD by 15% over the next year.If this indeed happens, by approximately how much (in USD) will your firm's cash flow change from the projection?

USD 4.2 Million

USD 24.7 Million

- USD 3.9 Million

- USD 11.3 Million