Consider the payable/receivable situation existing between four subsidiaries. The company indebtedness represents intercompany transactions that have taken place over the last month and are now due to be settled. Monthly amounts in 000s Payer Receiver UK USA Euro zone UK i. ii. 1,897 USA 867 1,335 195,000 Euro zone 924 926 1,085 156,600 Japan 542 Japan Australia Additional information Spot rates versus UK UKE/US$ 1.6563 UKE/JPY 217.6 /UK 0.7093 UKE/AU$ 2.2634 Borrowing costs in UK are 5.5 per cent. Transaction costs are UK6 per transfer. FX spread is 0.01 of 1 per cent. Paying countries pay in the currency of creditor (receiver) country. Required 789 What is each county's net position (calculate in UK)? ii. What are the annual cost savings from the introduction of a netting system?