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 $12 million
• Selling, general and administrative expenses of $30 million
• French sales of 80 million
• French cost of goods sold of 17 million
• French interest expenses of $2 million

The company expects the euro exchange rate to be one of three possible values: $1.1 per euro, $1.2 per euro, or $1.3 per euro.

Attempt 1/10 for 10 pts.

Part 1

What is the cash flow before taxes if the exchange rate turns out to be $1.1 per euro (in $ million)?

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Attempt 1/10 for 10 pts.

Part 2

What is the cash flow before taxes if the exchange rate turns out to be $1.2 per euro (in $ million)?

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Attempt 1/10 for 10 pts.

Part 3

What is the cash flow before taxes if the exchange rate turns out to be $1.3 per euro (in $ million)?