Question: Do not make this question or solution public. I have a question about net cash flows. What I need is to know how each of
Do not make this question or solution public. I have a question about net cash flows. What I need is to know how each of the following problems would be answered step by step. Lets say the cost of capital is 15.5%. An analyst has prepared a table that shows inflows and outflows in global regional currencies. The data is based on the 1st quarter of 2008. How would I use the following data to assess currency risk. The questions I would have to answer are: Which currency do you think ins contributing the most risk? Why? Explain. What approaches would be used to estimate exchange risk?
| Currency | Total Inflow (Local Currency) | Total Outflow | Net Inflow/Outflow (Local Currency) | Expected Exchange Rate | Net Inflow/Outflow (US $) |
| British Pounds () | |||||
| Canadian Dollars (C$) | |||||
| Swedish Krona (SK) | |||||
| Mexican Peso (MP) |
| Currency | Total Inflow (Local Currency) | Expected Exchange Rate | Net Inflow/Outflow (US $) | ||
| British Pounds () | |||||
| Canadian Dollars (C$) | |||||
| Swedish Krona (SK) | |||||
| Mexican Peso (MP) | |||||
| Currency | Total Inflow (Local Currency) | Expected Exchange Rate | Net Inflow/Outflow (US $) | ||
| British Pounds () | |||||
| Canadian Dollars (C$) | |||||
| Swedish Krona (SK) | |||||
| Mexican Peso (MP) | |||||
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