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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

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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 exchange rate scenario for the New Zealand dollar (NZ$): 1) NZS = $.70 2) NZS = $.75 3) NZS = $.80 (Assume US sales will be unaffected by the exchange rate). Assume that NZ$ earnings will be remitted to the U.S. parent at the end of the period. You can ignore the possible tax effects. Revenue and Cost Estimates: DeKalb Inc. (in Million of U.S. dollars and NZ dollars) US Business NZ Business Sales $800 NZ$300 Cost of materials 500 Operating expenses 300 Interest expenses

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