Answer:

Many decisions of Multi National Company(MNCs) is based on assessment of the future. Exchange rates of future will affect most of critical characteristics of the company like as costs and revenues. Let us be more specific, about various operations of Multi National Company(MNCs) in which they use exchange rate projections, including term financing and, capital budgeting decisions, long-term financing, hedging, short- investing, , and earnings assessment. All this mention operations will become effective if company has forecasted exchange rates accurately.