Depreciation in the value of currencies

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Reference no: EM131073919

Cash Flows: Assume that Live Co. a Canadian company has expected cash inflows of $200,000 from domestic operations, SF200,000 from Swiss operations, and 150,000 euros from Italian operations at the end of the year. The Swiss franc's value and euro's value are expected to be $1.25 and $1.41 respectively, at the end of the year. ( please show the steps )

At the end of the year what would it cost Live Co. to buy one Swiss franc?

At the end of the year what would it cost Live Co. to buy one Euro?

What are the expected Canadian dollar cash inflows to Live Co. at the end of the year?

If the Swiss franc and the euro both depreciated to $1.22 and $1.37 respectively, at the end of the year, what are the actual dollar cash flows of Live Co?

How much did Live Co. lose due to the depreciation in the value of these currencies?

What is the effect of this devaluation on the valuation of the Live Co. company?

Reference no: EM131073919

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