How would the results of problem one alter, if we additionally had sales from India to China, and the renminbi revalues against the rupee by 10% yearly for the next 15 years? Presuppose the volume of sales in China are double what they are in India in the beginning. Also, presuppose the price elasticity of demand is - 3 for the product in China. Presuppose secondly the expenses are incurred in rupees. Also, you are given that the expenses rise in rupees in the next 15 years (since the rupee devalues), but they rise only by half of the devaluation.

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