Using either or both charts below, determine the Cash Flows in USD before Taxes for the $3$ hypothetical exchange rates of $19$ pesos per USD, $20\mathrm{.}5$ pesos per USD, and $22$ pesos per USD. What is the worst case scenario for cash flows, rounded to the nearest million dollars, in this model?

All Sales and Expenses are in Millions

U$.$S$.$ Business

Mexico Business

Sales

$$250$

$2000$ pesos

Cost of Materials

$$50$

$1000$ pesos

Operating Expenses

$$80$

$300$ pesos

Interest Expenses

$$10$

$30$ pesos

Cash Flows

$+$ $$110$

$+670$ pesos

Impact of Possible Exchange Rates on Cash Flows

All Sales and Expenses are in Millions

MXN per USD $=19$ pesos per dollar

MXN per USD $=20\mathrm{.}5$ pesos per dollar

MXN per USD $=22$ pesos per dollar

Sales

US Sales

$$250$

$$250$

$$250$

Mexico Sales

$2000$ pesos $=$

$2000$ pesos $=$

$2000$ pesos $=$

Total Sales in USD

Cost of Materials and Operating Expenses

Cost of US Materials

$$50$

$$50$

$$50$

Cost of Mexico Materials

$1000$ pesos $=$

$1000$ pesos $=$

$1000$ pesos $=$

Total Cost of Materials in USD

Operating Expenses

U$.$S$.$ Operating Expenses

$$80$

$$80$

$$80$

Mexico Operating Expenses

$300$ pesos $=$

$300$ pesos $=$

$300$ pesos $=$

Total Operating Expenses in USD

Interest Expenses

U$.$S$.$ Interest Expense

$$10$

$$10$

$$10$

Mexico Interest Expense

$30$ pesos $=$

$30$ pesos $=$

$30$ pesos $=$

Total Interest Expenses in USD

Cash Flows in USD Before Taxes

$$138$ million

$$140$ million

$$143$ million

$$145$ million