Textbook Problem

Construct a spreadsheet that compares the cash flows resulting from the two plans. Under the first plan, net baht-denominated cash flows (received today) will be invested in Thailand at 15 percent for a one-year period, after which the baht will be converted to dollars. Under the second plan, net baht-denominated cash flows will be converted to dollars immediately and 60 percent of the funds will be used to support U.S. operations, while 40 percent will be invested in the United States for one year at 8 percent. Which plan is superior given the expectation for the | baht’s value in one year?