A firms expects to receive $20,000 from domestic operations and 20,000 British pounds (£) from a business in England. If the pound's value is $1.25, the expected total dollar cash flows are:

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The firm expects to receive $20,000 from domestic operations and 20,000 British pounds from England. With the pound valued at $1.25, the conversion of 20,000 pounds to dollars is 20,000 * $1.25 = $25,000. Adding this to the $20,000 from domestic operations gives a total of $45,000.

A Firms Expects to Receive $20,000 from Domestic Operations and 20,000