MNC's Valuation Problem Problem: A U.S.-based MNC has operations in three countries, which is expected to last three years. It is expected that the U.S. dollar exchange rate with euro, British pound, and renminbi as well as the discount rate remain unchanged during the next three years. The values of these parameters and the excepted annual cash flows appear in the table below. Calculated the value of the MNC. Year China Cash Flow in RMB Exch rate EU Cash Flow Exch. in euro Rate Dis. Rate Dis. Dis rate Exch. rate rate UK Cash Flow pound 100000 150000 200000 2 1000,000 1500000 2000000 7RMB/S 6RMB/$ 5RMB/$ 0.1 0.1 0.1 200000 250000 300000 0.65/$ 0.60/$ 0.50/$ 0.1 0.1 0.1 0.51/$ 0.6/$ 0.65/$ 0.1 0.1 0.1 Year China EU UK 2 3 Sum Valuation