Why would carson use the given approach

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Accounting for exchange rate risk. Carson Ltd is considering a ten-year project in Hong Kong, where the Hong Kong dollar is tied to the US dollar. Carson Ltd uses sensitivity analysis that allows for alternative exchange rate scenarios. Why would Carson use this approach rather than using the pegged exchange rate as its exchange rate forecast in every year?

Reference no: EM13935617

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Why would carson use the given approach : Carson Ltd uses sensitivity analysis that allows for alternative exchange rate scenarios. Why would Carson use this approach rather than using the pegged exchange rate as its exchange rate forecast in every year?
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