Q. Suppose the CFO of an American corporation with surplus cash flow has $90 million to invest and the corporation does not believe it will need to utilize these funds to retool or expand production capacity for 1 year. Assume additional that the interest rate for 1 year on CD deposits in US banks is .5 %, while the rate on 1 year CD deposits (denominated in Australian dollars) is currently 2.5 %. Assume additional that the exchange rate is currently .8 Australian Dollars per US$. What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.