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1. Use the following exchange rates to solve the currency exchange problems below: Currency Equivalent Value U.S. Dollar 1.00 Eurodollar .87 Chinese Yuan 6.88 Australian

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1. Use the following exchange rates to solve the currency exchange problems below: Currency Equivalent Value U.S. Dollar 1.00 Eurodollar .87 Chinese Yuan 6.88 Australian Dollar 1.38 Guatemalan Quetzal 7.52 Colombian Peso 2,988 Bitcoin .00015 Beginning Currency U.S. Dollars Australian Dollar Eurodollar Columbian Peso Bitcoin Amount 700 250 400 105,710 1,000 Ending Currency Chinese Yuan U.S. Dollar Guatemalan Quetzal Eurodollar Chinese Yuan Amount 4,838.19 $181.21 3,666.26 23.48 81,969,276.80 2. Use the following estimated cash flows over the next five year based on the year(s) in which the cash flow is expected to be received and utilize the respective risk adjusted discount rates to estimate the value of SRS Company, an American MNC operating in several countries. Convert all cash flows to U.S. dollars. Cash Flow in Local Cash Flow in Year in which cash flow Risk Adj. PV of Cash Currency Dollars is expected Disc. Rate Flow 5,000,000 U.S. $5,000,000 Every year 8% 2,000,000 Euros $ Next two years 8.5% 10,000,000 Yuan $ After three years 9% 15,000,000 Quetzal $ After years two and three 10.5% 8,000,000 Aust. $ $ At the end of year five 8.5% Value of SRS Company Today

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