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, 20.5 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 = 20.5 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