Question: In year - three, Perth International has a plan to expand the business in China, India and Malaysia. Consequently, it forecasts an 9 . 7

In year-three, Perth International has a plan to expand the business in China, India and Malaysia. Consequently,
it forecasts an 9.75 per cent increase in year-one earnings of its subsidiaries in year-three. Perth International
anticipates 3.4 per cent, 7.45 per cent, 11.12 per cent and 9.16 per nominal interest rate in Australia, China,
Indian and Malaysia, respectively, in year-three. It considers the International Fisher Effects to calculate the value
of CNY, INR and MYR against the Australian dollar in year-three using the year-two exchange rates A$/CNY,
A$/INR, and A$/MYR.
What is the total Australian dollar (A$) cash flow for year-three? (enter the whole number with no sign or
symbol)
Answer
 In year-three, Perth International has a plan to expand the business

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