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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

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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 Expected cash flow from British market 400 100 Expected exchange rate at which Canadian dollars can be converted to 0.7 U.S. dollars 0.8 Expected exchange rate at which British pounds can be converted to U.S. dollars 1.4 1.5 Required rate of return 10% 10% What is the value of the MNC if the required rate of return is changed to 15%

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