Question: I am not sure how to get the correct answer as below, kindly show me the steps required, thank you! Biopharma-Australia can borrow fund in

 I am not sure how to get the correct answer as

I am not sure how to get the correct answer as below, kindly show me the steps required, thank you!

below, kindly show me the steps required, thank you! Biopharma-Australia can borrow

Biopharma-Australia can borrow fund in Australia with an interest rate of 11.62% to invest 1,82 million Chinese yuan (CNY) and expected return of CNY2.27 million next year. Assume that Biopharma-Australia and Haier-China engage in a parallel loan in which the Haier-China gives Biopharma Australia CNY1.82 million in exchange for a loan in Australian dollar (A$) at the current exchange rate A$0.1835/CNY. These loans will be repaid by both parties at the end of one year. Assume that next year, Biopharma-Australia will pay the Haier-China 14.66% interest on CNY1.82 million and that the Haier-China will pay Biopharma-Australia 7.58% interest on the Australian dollar loan. Also, Biopharma-Australia believes that the CNY will appreciate to A$0.2535/CNY next year. How much the Biopharma- Australia will make a profit or loss in A$ from this parallel loan agreement in one year. (enter the whole number with no sign or symbol) Answer: 22552 X The correct answer is: 32946

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