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Using the cost and revenue information shown for DeKalb, Inc., determine how the costs, revenue, and cash flow items would be affected by three possible
Using the cost and revenue information shown for DeKalb, Inc., determine how the costs, revenue, and cash flow items would be affected by three possible exchange rate
scenarios for the New Zealand dollar NZ$: NZ$ $ NZ$ $ and $$Assume US sales will be unaffected by the exchange rate.
REVENUE AND COST ESTIMATES: DEKALB, INC.
IN MILLIONS OF US DOLLARS AND
NEW ZEALAND DOLLARS
Assume that NZ$ earnings will be remitted to the US parent at the end of the period. Ignore possible tax effects. Round your answers to the nearest dollar.
The preceding table shows that DeKalb Inc. is adversely affected by a New Zealand dollar value.
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