# Estimating an MNC’s Cash Flows Biloxi Co. is a U.S. firm that has a subsidiary in China. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Biloxi Co. has expected cash flows from its domestic business equal to \$10 million, and the Chinese subsidiary is expected to generate 100 million Chinese yuan at the end of the year. The expected value of yuan at the end of the year is \$.13. What are the expected dollar cash flows of the parent, Biloxi Co., in one year?

FindFind

### International Financial Management

14th Edition
Publisher: Cengage
ISBN: 9780357130698
FindFind

### International Financial Management

14th Edition
Publisher: Cengage
ISBN: 9780357130698

#### Solutions

Chapter 1, Problem 33QA
Textbook Problem

## Estimating an MNC’s Cash Flows Biloxi Co. is a U.S. firm that has a subsidiary in China. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Biloxi Co. has expected cash flows from its domestic business equal to \$10 million, and the Chinese subsidiary is expected to generate 100 million Chinese yuan at the end of the year. The expected value of yuan at the end of the year is \$.13. What are the expected dollar cash flows of the parent, Biloxi Co., in one year?

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