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 MillionsU.S. BusinessMexico BusinessSales$2502000 pesosCost of Materials$501000 pesosOperating Expenses$80300 pesosInterest Expenses$1030 pesosCash Flows+ $110+ 670 pesos

Impact of Possible Exchange Rates on Cash FlowsAll 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

SalesUS Sales$250$250$250Mexico Sales2000 pesos =2000 pesos =2000 pesos =Total Sales in USD Cost of Materials and Operating ExpensesCost of US Materials$50$50$50Cost of Mexico Materials1000 pesos =1000 pesos =1000 pesos =Total Cost of Materials in USD Operating Expenses U.S. Operating Expenses$80$80$80Mexico Operating Expenses300 pesos =300 pesos =300 pesos =Total Operating Expenses in USD Interest ExpensesU.S. Interest Expense$10$10$10Mexico Interest Expense30 pesos =30 pesos =30 pesos =Total Interest Expenses in USD Cash Flows in USD Before Taxes