Simplify the following set of intra-company cash flows for this Swiss firm. Use the following exchange rates:
$$\begin{array} { r l l }
£1.00 & = & \$ 2.00 \
€ 1.00 & = & \$ 1.50 \
\text { SFr } 1.00 & = & \$ 0.80
\end{array}$$ The fewest number of intra-affiliate cash flows is

Question

Simplify the following set of intra-company cash flows for this Swiss firm. Use the following exchange rates:
$$\begin{array} { r l l } 
 £1.00 & = & \$ 2.00 \
€ 1.00 & = & \$ 1.50 \
\text { SFr } 1.00 & = & \$ 0.80
\end{array}$$ The fewest number of intra-affiliate cash flows is

Quizplus · Accepted Answer

Since the exchange rates are all given in terms of the USD, there is no need for any intra-company cash flows to convert currencies. Therefore, the answer is one, as there is only one cash flow representing the actual payment or receipt of funds between different affiliates of the firm.

Simplify the Following Set of Intra-Company Cash Flows for This £1.00=$2.00€1.00=$1.50 SFr 1.00=$0.80\begin{array} { r l l } £1.00 & = & \$ 2.00 \\€ 1.00 & = & \$ 1.50 \\\text { SFr } 1.00 & = & \$ 0.80\end{array}£1.00€1.00 SFr 1.00​===​$2.00$1.50$0.80​

Simplify the Following Set of Intra-Company Cash Flows for This $\begin{array} { r l l } £1.00 & = & \$ 2.00 \\€ 1.00 & = & \$ 1.50 \\\text { SFr } 1.00 & = & \$ 0.80\end{array}$