Question
Incredibles Co. is a U.S. firm with a subsidiary in India. The subsidiary reinvests 30% of its net cash flows into operations and remits the
Incredibles Co. is a U.S. firm with a subsidiary in India. The subsidiary reinvests 30% of its net cash flows into operations and remits the rest to the parent. Incredibles Co. has expected cash flows of $200,000,000 from domestic business and the Indian subsidiary is expected to generate 10 billion Indian rupee at the end of the year. The expected value of rupee at the end of the year is $.014. What are the expected dollar cash flows of the parent of Incredibles Co. in one year?
Group of answer choices
$242,000,000
$298,000,000
$340,000,000
$214,485,714,286
$500,200,000,000
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