Expected dollar cash flows


Muchi Muchi Co. has a subsidiary in Hong Kong. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Muchi Muchi's expected cash flows from domestic business are $1,000,000 and the Hong Kong subsidiary is expected to generate 10 million Hong Kong dollars at the end of the year. The expected value of Hong Kong dollar is HK$7.8088. What are the expected dollar cash flows of Muchi Muchi's Co.?

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Finance Basics: Expected dollar cash flows
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