Mentari Inc. is a conglomerate company that 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 inter- subsidiary payments matrix for Mentari Inc in multiple currencies.

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

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

RECEIVING SUBSIDIARY (BND in millions)	PAYING SUBSIDIARY (BND in millions)
	Brunei	Malaysia	United Kingdom	Switzerland
Brunei
Malaysia	10
United Kingdom	20
Switzerland	15

Transaction cost in BND with no netting:

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

RECEIVING	PAYING SUBSIDIARY (BND in millions)
SUBSIDIARY (BND in millions)	Brunei	Malaysia	United Kingdom	Switzerland	Total receipt	Total Receipt/ (payment)
Brunei
Malaysia
United Kingdom
Switzerland
Brunei

Transaction cost in BND with multilateral netting: