Purchase Solution

Solving for the Expected Dollar Value

Not what you're looking for?

Ask Custom Question

Question: At the end of the year, a U.S. company has expected cash flows of ¥1,000,000 from Japanese operations, CHF200,000 from Swiss operations, and €350,000 euros from German operations. At the end of the year, the yen value is expected to be. $.011; the Swiss franc value is expected to be $1.08, and the euro value is expected to be $1.31. Calculate expected dollar cash flows for the company by currency and total. Show how you derive your answer.

Purchase this Solution
Solution Summary

This post illustrates how to calculate the expected dollar value from expected cash flows in various currencies. Am Excel file is attached which illustrates how the solution has been derived.

Solution Preview

See the attached file.

Calculate expected dollar cash flows for the company by currency ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Decision making with probabilities

    The expected value of a decision alternative is the sum of weighted payoff for the decision alternative The weight for a payoff is the probability of the associated state of nature and therefore the probability that the payoff will occur.

  • Walt Disney: fees and rates when exchanging peso for dollar

    If the spot rate expected in ninety days is $0.1305, what is the expected U.S. dollar value of the fee? the expected USD = 16m * 0.1305 = USD 2.088 million c. What is the hedged dollar value of the fee?

  • Calculate dollar appreciation against the rupiah & franc

    If e0 is the initial dollar value of the rupiah and e1 is the post-devaluation exchange rate, then we know that (e1 - e0)/e0 = 84%. Solving for e1 in terms of e0 yields e1 = 0.16e0.

  • Financial Analysis of Investment Purchases

    d) Show that the actual dollar value and the constant dollar value of Mario's investment 9 years from now represent the same amount of money 2.

  • Expected Value and Law of Large Numbers in Roulette

    So, the probability of not winning is 35/38 (losing a dollar) and of winning $11 3/38. The expected value to four decimal places is -0.0526 or $0.9474.

  • Time value of money

    The Acme Company must solve a series of five problems that require you to apply the concept of "time value of money," or TVM. The five problems are listed below solving them will require the use of Microsoft Excel.

  • Market Value and Hedge Positions Given Expected Market Drop

    What is the dollar value of your expected loss? c. For a 75-point drop in the S&P500, by how much does the index change? d. How many contracts should you buy or sell to hedge your position?

  • Currency Exchange Rate for Risky Organizations

    Assuming that the value of the U.S. dollar went down compared to the Euro, say, 1 US Dollar is now equal to 1.5 Euro. Local organizations with export activities tend to earn 1.5 Euro for every dollar of exports.

  • International Finance

    Given the currency scenario described above, what is the expected value of annual after tax dollar cash flows assuming no repatriation of profits to the United States? ANSWER.

View More Related Solutions