Cemerlang Inc. is a conglomerate company which has four subsidiaries located in Brunei, Malaysia, United Kingdom, and Switzerland. The exchange rates available for the company are MYR2.9000/BND, GBP0.4000/BND and BND1.2500/CHF. The following is the intersubsidiary payments matrix for Cemerlang Inc in multiple currency.

a. Convert all the cash flows into Brunei Dollar (BND) and fill in the table cells below to show the intersubsidiary payments matrix for Cemerlang Group. If the transaction cost is 2%, how much the company need to pay (in BND) if they decided not to do any netting?

Transaction cost in BND with no netting:_____________________

b. Perform multilateral netting by filling up the table below. If the transaction cost is 2%, how much the company need to pay (in BND) if they decided to do multilateral netting?

Transaction cost in BND with multilateral netting:___________________

PAYING SUBSIDIARY (in millions) RECEIVING SUBSIDIARY (in millions) Brunei Malaysia Switzerland United Kingdom GBP10 Brunei MYR58 CHF12.5 Malaysia BND10 GBP12 CHF16.25 BND 20 MYR29 CHF 20 United Kingdom Switzerland BND15 MYR43.5 GBP6 PAYING SUBSIDIARY (BND in millions) RECEIVING SUBSIDIARY (BND in millions) Brunei Brunei Malaysia Switzerland United Kingdom Malaysia 10 20 United Kingdom Switzerland 15 PAYING SUBSIDIARY (BND in millions) RECEIVING SUBSIDIARY (BND in millions) Brunei Brunei Malaysia Switzerland United Kingdom Total receipt Total Receipt/ (payment) Malaysia United Kingdom Switzerland Brunei