Question: Question 3 [25 marks] 3.1 Torinto AXE Ltd is a United States company doing a financial plan for the following year. It has no foreign

Question 3 [25 marks] 3.1 Torinto AXE Ltd is a United States company doing a financial plan for the following year. It has no foreign subsidiaries, but more than half of its sales are from exports. Its foreign cash inflows to be received from exporting and cash outflows to be paid for imported supplies over the next year are disclosed as follows: Currency Total Inflow Total Outflow Mexican Pesos (MXP) 15 000 000 9 000 000 Singapore dollars (S$) 7 000 000 9 000 000 New Zealand dollars (NZ$) 6 500 000 3 200 000 Canadian dollars (C$ 21 000 000 4 000 000 The spot rates and one-year forward rates as of today are: Currency Spot rate One-year forward rate MXP US$0.05 US$0.04 S$ US$0.73 US$0.71 NZ$ US$0.66 US$0.63 CS US$0.76 US$0.79 Using the information given above, calculate the net exposure of each foreign currency in United States dollars. (20)

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