Suppose that Breida Co., a U.S.-based MNC, had previously acquired a target company in Singapore. The initial valuation of the target yielded a positive net present value of the targets cash flow. However, changes in the forecasted exchange rate of the Singapore dollar have caused Breida Co. to reassess its investment. Breida is considering divesting the subsidiary that it had acquired.

Now that Breida has calculated the U.S. dollars received from divesting, as shown in the following table, it must compare this value to the present value of cash flows from continuing with the foreign subsidiary.

Option 1: Divest Subsidiary Today	Today
Selling Price in S$ Today	$12,000,000
Exchange Rate of S$ Today	$0.46
U.S. Dollars Received from Divestiture Today, in S$	S$5,520,000

Complete the last row of the table, filling in the cumulative PV of cash flows from the subsidiary in U.S. dollars.

Note: The PV values shown in the table are rounded to two decimal places. Use these rounded values in the calculations for cumulative PV of cash flows.

Option 2: Retain Subsidiary for 2 Years	Today	1 Year from Today	2 Years from Today
After tax S$ Remitted to Parent		S$7,000,000	S$20,000,000
Exchange Rate of S$		$0.44	$0.40
U.S. Dollar Cash Flows		$3,080,000	$8,000,000
PV of Cash Flows at 15.00%		$2,678,260.87	$6,049,149.34
Cumulative PV of Cash Flows