Measuring Economic Exposure Using the cost and revenue information shown for DeKalb, Inc., determine how the costs, revenue, and cash flow items would be affected by three possible exchange rate scenarios for the New Zealand dollar (NZ$):
(1) and .
(Assume U.S. sales will be unaffected by the exchange rate.) Assume that NZS earnings will be remitted to the U.S. parent at the end of the period. Ignore possible tax effects.
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