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Energy Power is an Australian mining company which mines coal and export most of its production to several countries (detail below). During 2019 the total

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Energy Power is an Australian mining company which mines coal and export most of its production to several countries (detail below). During 2019 the total revenue for the company was 110 million Australian dollar (AUD). However, after Covid-19 hit the world economy the company experienced a decline in demand from several countries during 2020. Bilateral exchange rates with export-countries also have fluctuated significantly as shown below. Energy Power Cashflow 2019 and 2020 Source Share of total production when converted to Australian dollars (2019) Export to China Export to Japan Export to India Sell to the Australian market Total revenue Average exchange rates for the year 2019 4.80 75.82 48.95 52% 29% 15% 496 Average exchange rates for the year 2020 4.76 73.83 51.15 100% (110 million AUD) Using the information provided, answer the following questions: 2.1 Australia has scaled back its expectations for record export revenue from energy in the 2019/20 financial year as trade tariffs slow global economic growth, Australia's Department of Industry said in its latest quarterly report. Assuming that the share of exports and domestic consumption for Energy Power remains unchanged from 2019 to 2020. Estimate the cash flow in terms of Australian dollars for Energy Power using 2020 exchange rates. (15 marks] 2.2 Assume that the export shares/weights, and the sell to Australian producers remain unchanged. Please rank the currencies of China, India and Japan in terms of positive/or negative percentage contributions to the company cashflows from 2019 to 2020 (15 marks) Assume that the Covid-19 pandemic during 2020 has decreased exports for Energy Perwer and the demand for the company However, the Australian demand remain unchanged. Estimate the revenue for cash flow) under the following scenario. Estimate the revenue (or cash flow) under the following scenarios a) Exports to Japan declined by 20%, Indian exports declined by 10% and Chinese exports declined by 10% b) Exports to Japan declined by 10%, Indian exports declined by 20% and Chinese exports are unchanged. [15 marks)

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