Problem:
Given where things are going with the project, you decide to start giving some thought to how the company can make money or lose money by simply engaging in international transactions. You start by looking at the net sales figures from the European region that the sales vice president provided in the following:
Year 1 sales = 125 million euros
Year 2 sales = 150 million euros
Year 3 sales = 175 million euros
Year 4 sales = 200 million euros
Year 5 sales = 250 million euros
The forecasted exchange rate for euros to U.S. dollars is between 0.40 to 1.20 (which is 0.40 euros/US$1 to 1.20 euros/US$1), and the current exchange rate is 1 euro for US$1. You decide to use these two extreme points to analyze how European revenue would translate to U.S. dollars over the 5-year time period.
Use Microsoft Excel to analyze the European net sales translated into U.S. dollars based on the two exchanges rates and how that would differ from the current exchange rate.
Prepare a slide presentation for senior management that explains the forecasted direction for exchange rates and what that means to the company's revenue and profits.