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Arlington Co., a US-based MNC, expects to receive 9 million euros (from its German business) in each of the next 3 years, and 55 million

Arlington Co., a US-based MNC, expects to receive 9 million euros (from its German business) in each of the next 3 years, and 55 million Mexican pesos (from its Mexican business) in each of the next 3 years. The euro exchange rate is expected to be $1.38 at the end of the first year and is expected to depreciate by 2% against the dollar each year over time (i.e. will be $1.352 in year 2 and $1.325 in year 3). The Mexican peso on the other hand is expected to be $0.13 at the end of the first year and expected to depreciate by 2% against the dollar each year over time (i.e. will be $0.127 in year 2 and $0.125 in year 3). If Arlington Co.'s required rate of return is 10%, find the present value of its total cashflows from Germany and Mexico in US dollars. Please show your work.

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