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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