For the coming year, a Singapore subsidiary of an American company is expected to earn an after-tax profit of S\($25\) million and its depreciation charge is estimated at S\($5\) million.

The exchange rate is expected to rise from S\($2.00\) per dollar to S\($1.5\) per dollar for the next year.

(a) What is the potential economic gain or loss?

(b) If the anticipated business activity were to stay the same for the next 3 years, what would be the total economic gain or loss for 3 years?