Guney is a company based in Europe and is considering investment opportunities in US and...

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Finance

Guney is a company based in Europe and is considering investment opportunities in US and Turkey that could effect the value of the company. Please analyze each investment below to see if it would create any exchange rate uncertainty on Guneys expected cashflows and how?

1- A licensing deal to sell technology to a US company for US$5 mn, the payment is invoiced in dollars.

2- Acquisition of a large firm in Turkey

3- Start importing the major raw material from Turkey in TL at a lower cost instead of a company in Europe.

4- Export to US in USD

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