49)tennessee Co

Question 49
Multiple Choice

49)Tennessee Co. conducts business in the U.S. and Canada. The net cash flows from Canadian operations are expected to be C$500,000 next year. The Canadian dollar is valued at about $.90. The net cash flows from U.S. operations are supposed to be $200,000. To reduce sensitivity of its net cash flows without reducing its volume of business in Canada, Tennessee Co. could: A) purchase Canadian supplies. B) increase its borrowings in U.S. C) decrease prices on Canadian goods. D) decrease its borrowed funds in Canada.