Question: ( b ) Raytheon Co . is a U . S based MNC that purchases most of the materials from Australia and generates a small
b Raytheon Co is a US based MNC that purchases most of the materials from Australia and generates a small portion of its sales from exporting to Australia. Its US sales are denominated in US dollars whereas its Australian Sales are denominated in Australian dollarC$ Raytheon wants to assess its economic exposure, which is the exposure of its total cash flows to exchange rate movements. Assume that Raytheon Co expects three possible exchange rates for the Australian dollar over the period concern: $$ and $ Using the estimated sales and expenses for Raytheon's US and Australian business segments millions of currency units Determine how the costs, revenue, and cash flow would be affected by three possible exchange rate scenarios
tableUS Business,Australian BusinessSales$A $
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