How should depreciation of a firms home currency affect

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Reference no: EM13936009

1. Currency effects on cash flows. How should appreciation of a firm's home currency generally affect its cash inflows? How should depreciation of a firm's home currency generally affect its cash outflows?

2. Transaction exposure. Fischer Ltd exports products from Europe to the US. It obtains supplies and borrows funds locally. How would the appreciation of the dollar be likely to affect its net cash flows? Why?

Reference no: EM13936009

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