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Currency translations from Euros to US Dollars

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Year 1 sales = 110 million euros
Year 2 sales = 130 million euros
Year 3 sales = 150 million euros
Year 4 sales = 175 million euros
Year 5 sales = 190 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.

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Solution Summary

Illustrates using Microsoft Excel how 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. One can understand how the fluctuations in the currency will affect the revenues of a company having exposure to international markets.

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See the attached file for currency translation.

Year Sales (in Millions)
in Euro in $ at 1Euro/$ in $ at 0.4Euro/$ in $ at 1.2 ...

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