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Biloxi Co. is a U.S.firm that has a subsidiary in China. The subsidiary reinvests 20% of its net cash flows into operations and remits 80%

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Biloxi Co. is a U.S.firm that has a subsidiary in China. The subsidiary reinvests 20% of its net cash flows into operations and remits 80% to the parent. Biloxi Co. has expected cash flows from domestic business equal to $20,000,000 and the Chinese subsidiary is expected to generate 100 million Chinese yuan at the end of the year. The expected value of yuan at the end of the year is $.20. The expected dollar cash flows of the parent of Biloxi Co. in one year are $ million. 40 O 30 26 0 38 20 034 28 36 022 0 24

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