On the following graph, use the blue points (circle symbols) to plot the U.S. dollar cash flows from the original operating structure under both exchange rate scenarios $0.75 and $0.85. Then use the orange points (square symbols) to plot the U.S. dollar cash flows from the proposed operating structure under both exchange rate scenarios $0.75 and $0.85. Plot the points from left to right in the order you want them to appear. Line segments will connect automatically. Cash Flows (Millions of Dollars) 80 120 110 100 0.70 0.75 0.80 0.85 Exchange Rate Scenario (U.S. Dollars per Canadian Dollar) Original Operating Structure Proposed Operating Structure ? Because the line for the proposed operating structure is flatter . the U.S. dollar cash flows in the proposed operating structure are less sensitive to changes in the exchange rate of the Canadian dollar when compared with the U.S. dollar cash flows of the original operating structure.
On the following graph, use the blue points (circle symbols) to plot the U.S. dollar cash flows from the original operating structure under both exchange rate scenarios $0.75 and $0.85. Then use the orange points (square symbols) to plot the U.S. dollar cash flows from the proposed operating structure under both exchange rate scenarios $0.75 and $0.85. Plot the points from left to right in the order you want them to appear. Line segments will connect automatically. Cash Flows (Millions of Dollars) 80 120 110 100 0.70 0.75 0.80 0.85 Exchange Rate Scenario (U.S. Dollars per Canadian Dollar) Original Operating Structure Proposed Operating Structure ? Because the line for the proposed operating structure is flatter . the U.S. dollar cash flows in the proposed operating structure are less sensitive to changes in the exchange rate of the Canadian dollar when compared with the U.S. dollar cash flows of the original operating structure.
ChapterP1: Part 1: Integrative Problem: The International Financial Environment
Section: Chapter Questions
Problem 4Q
Question
Please correct answer and don't use hand rating
Transcribed Image Text:On the following graph, use the blue points (circle symbols) to plot the U.S. dollar cash flows from the original operating structure under both
exchange rate scenarios $0.75 and $0.85. Then use the orange points (square symbols) to plot the U.S. dollar cash flows from the proposed
operating structure under both exchange rate scenarios $0.75 and $0.85. Plot the points from left to right in the order you want them to appear.
Line segments will connect automatically.
Cash Flows (Millions of Dollars)
80
120
110
100
0.70
0.75
0.80
0.85
Exchange Rate Scenario (U.S. Dollars per Canadian Dollar)
Original Operating Structure
Proposed Operating Structure
?
Because the line for the proposed operating structure is flatter
.
the U.S. dollar cash flows in the proposed operating structure are
less sensitive to changes in the exchange rate of the Canadian dollar when compared with the U.S. dollar cash flows of the original
operating structure.
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