Carson Co. is considering a 10-year project in Hong Kong, where the Hong Kong dollar is tied
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Carson Co. is considering a 10-year project in Hong Kong, where the Hong Kong dollar is tied to the U.S. dollar. Carson Co. uses sensitivity analysis that allows for alternative exchange rate scenarios. Why would Carson use this approach rather than using the pegged exchange rate as its exchange rate forecast in every year?
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Carsonrecognizes that the pegged ...View the full answer
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