Thornton Industries is a U.S. firms with operations in France. The company expects the following cash flows: - U.S. sales of $150 million - U.S. cost of goods sold of $60 million - U.S. interest expenses of $15 million - Selling, general and administrative expenses of $30 million - French sales of 80 million - French cost of goods sold of 13 million - French interest expenses of 2 million The company expects the euro exchange rate to be one of three possible values: $1.09 per euro, $1.19 per euro, or $1.29 per euro. Part 1 Attempt 2/10 for 10 pts. What is the cash flow before taxes if the exchange rate turns out to be $1.29 per euro (in \$ million)? What could the company do to reduce its economic exposure to the euro? Check all that apply: Restructure debt to increase debt payments in euros Increase sales in France Increase imports from France Hedge its euro transactions The company decided to restructure its business to reduce its exposure to the euro exchange rate. In particular, the company decided to do the following: - Renegotiate some export contracts to invoice them in dollars instead of euros, increasing dollar sales to $179 million and decreasing euro sales to 56 million. - Import more supplies from France, increasing French cost of goods sold to 33 million and lowering U.S. cost of goods sold to $36 million. - Borrow more euros to pay off some dollar debt, increasing euro interest expenses to 10 milion and reducing dollar interest expenses to $5.48 million. What is the cash flow before taxes if the exchange rate turns out to be $1.29 per euro (in $ million)