Question

The multinational company Ozi Ltd. anticipates 44 million Australian dollars (A$) incomes from the local business next year. It forecasts next year 81 million Japanese yen (YEN), 54 million Indian rupee (INR) and 31 million Malaysian ringgit (MYR) earnings of its subsidiaries in Japan, Indian and Malaysia, respectively. The subsidiaries remit 52 per cent of their proceeds to the Australian parent. Calculate the total A$ cash flow if Ozi expects the next year value of YEN, INR and MYR are A$0.0287, A$0.0638 and A$0.6254, respectively. (enter the whole number with no sign or symbol)

Answer 1

	Japan	India	Malayasia
Earnings	81,000,000	54,000,000	31,000,000
Remittance to Australia	52%	52%	52%
Remittance to Australia	=81000000*52%	=54000000*52%	=31000000*52%
Remittance to Australia	42,120,000	28,080,000	16,120,000
Expected forward rate	0.0287	0.0638	0.6254
Expected cashflow to Australia	1,208,844	1,791,504	10,081,448