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Riddle Company has operations around the globe.Currently, the firm is considering a project in the country of ABC.The project will have a life of 15...

Riddle Company has operations around the globe. Currently, the firm is considering a project in the country of ABC. The project will have a life of 15 years. ABCs currency is tied to the U.S. dollar. In performing the analysis Riddle has decided to use sensitivity analysis allowing for alternative exchange rate scenarios. Does this seem reasonable? Why not use the pegged rate every year over the life of the project?

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