A multinational corporation (MNC) can be valued in a similar manner to that of a domestic firm -- by calculating the present value of expected future cash flows. However, for an MNC, the expected cash flows in each time period may be coming from any number of different countries and in any umber of different foreign currencies. These cash flows in foreign currencies will need to be converted to domestic currency. In the case of a US- based MNC parent, the cash flows remitted from foreign subsidiaries must be converted to dollars. This added level of complexity can be modeled with the following equation for the expected cash flows for time period : E(CF.) - (CF) E(8,0) here CEs the cash flow denominated in foron currency at the end of time period Sr represente en the change rate for the foreign currency measured units of domestie cum per unit of fore on current CF, is the cash flow denominated in foreign currencyj, at the end of time period Sj, represents an the exchange rate for the foreign currency, measured in units of domestic currency per unit of foreign currency trow suppose that at the end of the next time period t. California Co. expects cash flows from subsidianes in located both Mexico as well as the UK addition to cash flows from the local business in the United States. At the end of time period t, the cash flow expected from the local business expected to be $500,000 while the cash flow expected from the subsidiary in Mexico is expected to be 1,300,000 pesos, which is equivalent to 5117.000 At the exchange rate of $0.09 per peso If the expected cash flow from the UK Subsidiary is 500.000 euros, and the change rate is forecasted to be 31.10 per cura then the total exected cash flows for Chifornia Co in dollars are