problem 13.1 is below, 13.9 is a question that has to do with 13.1 so i put it in the same question.

322 VALUATION AND THE STRUCTURE OF MULTINATIONAL OPERATIONS a. Calculate VolLS|icNY by discounting at the appropriate risk-adjusted yuan rate iCNY and then converting into shekels at the current spot rate. b. Calculate VolLS jills by converting yuan into shekels at expected future spot rates and then discounting at the appropriate rate in shekels.al PROBLEMS ir Cross-border capital budgeting under the international parity conditions. et 13.1 You work for an Israeli company that is considering an investment in China's Sichuan province. The investment yields expected after-tax Chinese new yuan cash flows (in millions) as follows: +CNY200m +CNY500m +CNY300m n -CNY600m of Expected inflation is 6 percent in shekels and 3 percent in yuan. Required returns for this risk-class are ills = 15 percent in Israeli d shekels and iCNY = 11.745 percent in yuan. The spot exchange rate is S ILS/CNY = ILS 0.5526/CNY. Assume the international parity condi- tions hold.13.9 Consider the investment in China from Problem 13 . 1 . Suppose each cash flow generated by the project must be loaned to the China Construction Bank for one year at a zero percent interest rate . China Construction Bank bonds have a yield of 6. 09 percent in yuan . China's corporate income tax rate is 25 percent . At what yuan rate should you discount the opportunity cost of these blocked funds ? What is the opportunity cost of blocked funds in yuan ?&quot