Jack Sprat Inc. has a subsidiary in Chili. Jack Sprat's expected cash flows from domestic business are $100,000, and the Chilean subsidiary is expected to generate 100 million Chilean pesos at the end of the year. The expected value of the peso is $0.001. In year two the cash flows and exchange rates are expected to be the same. The interest rate for the next two years is 8.00% What are the present value of these dollar cash flows of Jack Sprat Inc.?

Post you answer without decimal places (with calculations nd steps)