1.Perth InternationalCo., an Australian multinational company, forecasts 60 million Australian dollars (A$) earnings next year (i.e., year-one).It expects 53 million Chinese yuan (CNY), 41 million Indian rupees (INR) and 33 million Malaysian ringgit (MYR) proceeds of its three subsidiaries in year-one. It also forecasts the year-one exchange rates A$0.2849/CNY, A$0.0313/INR and A$0.5449/MYR.

The company anticipates a 4.17 per cent increase in the year-one income of its subsidiaries in year-two.

Nominal interest rate in Australia, China, India and Malaysia respectively will remain the same in the next 3 years.

Current nominal interest rates: Australia (4.4%), China (7.67%), India (13.3%) and Malaysia (10.25%)

Subsidiaries will invest 22 per cent, 54 per cent and 41 per cent of their year-two earnings in China, India and Malaysia, respectively, for next year due to foreign currency higher nominal interest rate.

Perth International believes in the Purchasing Power parity, considering a 2.55 per cent real interest in Australia, China, India and Malaysia to calculate the expected foreign currency value against the Australian dollar for year-two based on the year-one exchange rates A$/CNY, A$/INR, and A$/MYR.

a) What is the total Australian dollar (A$) cash flow for year-two? (enter the whole number with no sign or symbol)

2.In year-three, Perth International has a plan to expand the business in China, India and Malaysia.Consequently, it forecasts an 8.03 per cent increase in year-one earnings of its subsidiaries in year-three. Perth International anticipates 3.36 per cent, 7.20 per cent, 11.12 per cent and 9.13 per cent inflation in Australia, China, Indian and Malaysia, respectively, in year-three. It considers the Purchasing power parity 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.

(Note: Investment of subsidiaries in year-two will be matured in this year and include these investment proceeds to the year-three cash flow. It means each subsidiary's year-three cashflow is year-three earnings and year-two investment proceeds.)

What is the total Australian dollar (A$) cash flow for year-three? (enter the whole number with no sign or symbol)

3.The subsidiaries of Perth International remit their earnings and investment proceeds to the Australian parent at the end of each year. The annual weighted average cost of capital or required rate of return of Perth International is 6.09 per cent.

Calculate the current value of the Perth International Co. using its expected cash flows in year-one, year-two and year-three. (enter the whole number with no sign or symbol).