Subsidiary a of Mega Corp

Multiple Choice

Subsidiary A of Mega Corp. 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