Casper Inc. is a U.S. firm preparing its financial plan for the upcoming year. It has no foreign subsidiaries, but the majority of its sales are from exports to Australia, Canada, Argentina and Taiwan. Estimated foreign cash inflows to be received from exports and foreign cash outflows to be paid for imports over the next year are shown below:

Currency                    Total Inflow   Total Outflow

Australia dollars (A$) A$33,000,000 A$3,000,000

Canada dollars (C$)    C$6,000,000   C$2,000,000

Argentina pesos (AP) AP12,000,000 AP11,000,000

Taiwan dollars (T$)    T$5,000,000    T$9,000,000

Today’s spot rates and one-year forward rates in US$ are as follows:

Currency     Spot Rate   One-Year Forward Rate

            A$                   $ .91    $ .94

            C$                   .61          .60

            AP                   .19          .16

            T$                    .66          .65

Given the forecast of the A$ along with the forward rate of the A$, what is the expected increase or decrease in US$ cash flows which would result from hedging the net cash flows in A$? Would you recommend that Casper Inc. should hedge the A$ position?