The following table applies to Questions 12, 13, and 14. To make the questions simple, assume that the MNC firm has its domestic market and two international markets, and that its business life ends in the second year (i.e., current year is Year O). Year 1 Year 2 Expected cash flow from local market 100 200 Expected cash flow from Canadian market 200 600 100 Expected cash flow from British market 400 0.7 0.8 Expected exchange rate at which Canadian dollars can be converted to U.S. dollars 1.4 1.5 Expected exchange rate at which British pounds can be converted to U.S. dollars 10% 10% Required rate of return What is the expected total cash flows in Year 2? (Hint: total cash flows in Year 2 before discount)? $830 $700 $920 $660 U.S. dollars Required rate of return 10% 10% What is the value of the MNC? $1,482 $1,413 O $1,115 $2,120 What is the value of the MNC if the required rate of return is changed to 15%? $1,323 $1,487 $1,552 $1,648