Assume the economy was stable throughout of the year which there is no taxes will be charged. The exchange rate for Singapore and Malaysia are SGD 1.39/USD and RM3.08/USD respectively. The Singapore dollar and Malaysian ringgit were expected to appreciate by 5 percent starting in the first year and remain the same. Forecast the net cash flow for Laguna Inc. under each scenario.

Laguna Inc. (U.S firm) is estimating to produce supplement health care. It has subsidiaries in Singapore and Malaysia. Below are the details of transactions for Laguna Inc. throughout the year: Sales (units) Price (per unit) Cost of material (units) Price (per unit) Interest expenses Singapore 500,000 SGD 30 180,000 SGD 25 SGD10,000 Malaysia 300,000 RM 50 160,000 RM25 RM25,000 U.S 600,000 USD 20 2,000,000 USD 15 USD 45,000