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Using either or both charts below, determine the Cash Flows in USD before Taxes for the 3 hypothetical exchange rates of 19 pesos per USD, 20.5 pesos per USD, and 22 pesos per USD. What is the worst case scenario for cash flows, rounded to the nearest million dollars, in this model? All Sales and Expenses are in Millions U.S. Business Mexico Business Sales $250 2000 pesos Cost of Materials $50 1000 pesos Operating Expenses $80 300 pesos Interest Expenses $10 30 pesos Cash Flows + $110 + 670 pesos Impact of Possible Exchange Rates on Cash Flows All Sales and Expenses are in Millions MXN per USD = 19 pesos per dollar MXN per USD = 20.5 pesos per dollar MXN per USD = 22 pesos per dollar Sales US Sales $250 $250 $250 Mexico Sales 2000 pesos = 2000 pesos = 2000 pesos = Total Sales in USD Cost of Materials and Operating Expenses Cost of US Materials $50 $50 $50 Cost of Mexico Materials 1000 pesos = 1000 pesos = 1000 pesos = Total Cost of Materials in USD Operating Expenses U.S. Operating Expenses $80 $80 $80 Mexico Operating Expenses 300 pesos = 300 pesos = 300 pesos = Total Operating Expenses in USD Interest Expenses U.S. Interest Expense $10 $10 $10 Mexico Interest Expense 30 pesos = 30 pesos = 30 pesos = Total Interest Expenses in USD Cash Flows in USD Before Taxes Group of answer choices
a-$143 million
b- $145 million
c-$140 million
d-$138 million