Subsidiary a of Mega Corporation Has Net Inflows in Australian

question 62

Multiple Choice

Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000. The expected exchange rate of the Australian dollar is $.55. What is the net inflow or outflow as measured in U.S. dollars?

• A) $500,000 outflow.
• B) $500,000 inflow.
• C) $275,000 inflow.
• D) $275,000 outflow.

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Definitions:

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