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Bil Prices. Orangipuku Air Lines requires approximately $1 million in short-term finance today for a period of 180 days and has arranged a 90-day bank
Bil Prices. Orangipuku Air Lines requires approximately $1 million in short-term finance today for a period of 180 days and has arranged a 90-day bank bill facility with CanWest Bank. The bill has a $1 million face value. Orangipuku Air Lines will roll over the bank bill into a second bank bill after 90 days. The current 90-day bank bill rate is 5.25% pa and the 90-day bank bill rate in 90 days' time is 5.36% pa. What are the cash inflows for Orangpuku Air Lines today? What are the cash inflows for Orangipuku Air Lines after 90 days? What are the cash outflows for Orangipuku Air Lines after 180 days? LO 6
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