$E(CF_{S,t}) = \sum_{j=1}^{n} (E(CF_{j,t}) \times E(S_{j,t}))$
where
• $CF_{j,t}$ is the cash flow denominated in foreign currency $j$, at the end of time period $t$
• $S_{j,t}$ represents an the exchange rate for the foreign currency, measured in units of domestic currency per unit of foreign currency
$868,000
$1,240,000
$1,488,000
$1,612,000
If the expected cash flow from the UK subsidiary is 1,50
expected cash flows for California Co., in dollars, are