Ask Question
22 April, 01:48

Subsidiary A of Mega Corporation has net outflows in Australian dollars of A$1,000,000, while Subsidiary B has net inflows 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?

+2
Answers (1)
  1. 22 April, 03:34
    0
    net outflow is $275,000

    Explanation:

    given data

    net outflows = $1,000,000

    net inflows = $1,500,000

    exchange rate = $.55

    to find out

    What is the net inflow or outflow as measured in U. S. dollars

    solution

    we get here net flow as measured in U. S. dollars that is express as

    net flow = (net outflows - in outflows) * exchange rate ... 1

    put here value we get

    net flow = ($1000000 - $1500000) * 0.55

    net flow = - $275,000

    so net outflow is $275,000
Know the Answer?