Question 13

one possible answer

A U.S. MNC has a subsidiary in Portugal. The subsidiary reinvests half of its net cash flows into operations and romits half to the parent. The MNC has expocted cash flows of $10milion from domestic business and the European subsidiary is erpected lo generain 20mllion

at the end of the year. The expected valve of Euro at the end of the year Is $1.13

The expected dollar cash flows of the MNC in one year are qual to:

- 21,3 million dollars - 36 million dollars

- Cannot be expected - 20 million dollars