Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. haier-china can borrow fund in china with an inter

Haier-China can borrow fund in China with an interest rate of 11.28% to invest 1.63...

50.1K

Verified Solution

Question

Finance

Haier-China can borrow fund in China with an interest rate of 11.28% to invest 1.63 million Australian dollars (A$) and expected return of A$1.92 million next year. Assume that Haier-China and Biopharma-Australia engages in a parallel loan in which the Biopharma-Australia gives Haier-China A$1.63 million in exchange for a loan in Chinese yuan (CNY) at the current exchange rate CNY3.5719/A$. These loans will be repaid by both parties at the end of one year. Assume that next year, Haier-China will pay Biopharma-Australia 14.17% interest on A$1.63 million and that the Biopharma-Australia will pay Haier-China 7.05% interest on the Chinese yuan loan. Also, Haier-China believes that the A$ will depreciate to CNY3.2913/A$ next year. How much the Haier-China will make a profit or loss in CNY from this parallel loan agreement in one year. (enter the whole number with no sign or symbol)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

A buffer is prepared by adding 300.0 mL of 0.050 M Ch3COONa to a 500.0 mL...

Physics
1.2K views

An engine is pushed on the floor. The engine weighs 32 lbs and the angle between...

General Management
1.2K views

The US President Donald Trump and his advisors have repeatedly said that they intended to get...

Basic Math
1.2K views

If a 43.08 gram piece of brass which has a specific heat of 0.38 J/gC...

Algebra
1.2K views

Check DUA x 12 13

Accounting
1.2K views

he following information is given for XYZ, Corp and will be used to answer the...

Accounting
1.2K views

3) Prepare a Production Budget for 2022 based on the following: 1st QTR Sales 8000...

Accounting
1.2K views

Days' sales in inventory is calculated as: A) Ending inventory divided by cost of...

Accounting
1.2K views

What is a long-lived asset? How does Best Buy account for long-lived assets, and what...

Accounting
1.2K views

Required: Use the appropriate items listed above as a basis for determining: (a) Cost of...

Accounting
1.2K views

On July 1, 20x1, a firm purchased a 1-year insurance policy for $1,500 and paid...

Accounting
1.2K views

QUESTION 1 (20 Marks) REQUIRED 1.1 Prepare the overhead allocation statement (using traditional costing). (14...