Question: ABC Co . is a U . S . firm with a subsidiary in UAE. The subsidiary reinvests 2 0 % of its net cash

ABC Co. is a U.S. firm with a subsidiary in UAE. The subsidiary reinvests 20% of its net cash flows into operations and remits the remaining to the parent. ABC Co. has expected cash flows of $5,000,000 from domestic business and the UAE subsidiary is expected to generate 20 million dirhams at the end of the year. The expected value of the dirham at the end of the year is $.27. What are the expected dollar cash flows of the parent of XYZ Co. in one year?a.$19,500,000b.$10,000,000c.$31,200,000d.$9,320,000

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