Currency effects on cash flows
Problem: 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?
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Currency Effects on Cash Flows. How should appreciation of a firm's home currency generally affect its cash inflows?
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Explain the theory of purchasing power parity. Based on this theory, what is a general forecast of the values of currencies in countries with high inflation?
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