This is for International Finance Class. Please Show All Work whether in Word or Excel. Thank You In Advance :)

5.Kanab Co. and Zion Co. are U.S. companies that engage in much business within the U.S. and are about the same size.They both conduct some international business as well.

Kanab Co. has a subsidiary in Canada that will generate earnings of about C$20 million in each of the next5years. Kanab Co. also has a U.S. business that will also receive about C$1 million (after costs) in each of the next5years as a result of exporting products to Canada thatare denominatedin Canadian dollars.

Zion Company has a subsidiary in Mexico that will generate earnings of about 1 million pesos in each of the next5years.Zion Co. also has a business in the U.S. that will receive about 300 million pesos (after costs) in each of the next5years as a result of exporting products to Mexico thatare denominatedin Mexican pesos.

The salvage value of Kanab's Canadian subsidiary and Zion's Mexican subsidiary will be zero in 5 years.The spot rate of the Canadian dollar is $.60 while the spot rate of the Mexican peso is $.10.Assume the Canadian dollar could appreciate or depreciate against the U.S. dollar by about 8% in any given year, while the Mexican peso could appreciate or depreciate against the U.S. dollar by about 12% in any given year.

Which company is subject to a higher degree of translation exposure? Explain.