Assume that Mill Corp., a U.S.-based MNC, has applied the following regression model to estimate the sensitivity of its cash flows to exchange rate movements: PCFt = a0 + a1et + t where the term on the left-hand side is the percentage change in inflation-adjusted cash flows measured in the firm's home currency over period t, and et is the percentage change in the exchange rate of the currency over period t. The regression model estimates a coefficient of a1 of 2. This indicates that if the foreign currency: a. depreciates by 1 percent, Mill's cash flows will increase by 2 percent. b. appreciates by 1 percent, Mill's cash flows will decline by 2 percent. c. None of these are correct. d. depreciates by 1 percent, Mill's cash flows will decline by 2 percent. e. appreciates by 1 percent, Mill's cash flows will decline by .2 percent