Assume That Live Co

question 53

Multiple Choice

Assume that Live Co. has expected cash flows of $200,000 from domestic operations, 200,000 Swiss francs from Swiss operations, and 150,000 euros from Italian operations at the end of the year. The Swiss franc's value and the euro's value are expected to be $.83 and $1.29, respectively, at the end of this year. What are the expected dollar cash flows of Live Co?​

• A) ​$200,000
• B) ​$559,500
• C) ​$582,500
• D) ​$393,500

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Definitions:

Production

The process of creating, manufacturing, or crafting goods and services to be sold or used.

Net Operating Income

Income generated from normal business operations, excluding taxes and interest.

Relevant Costs

Costs that will be affected by a decision in the future and are pertinent to a specific business decision.

Alternative B

A second or other option in a set of choices, commonly referred to in decision-making scenarios or proposals.