Q2 (5 marks) The price of a machine produced by a Japanese manufacturer is currently 250m and the current spot exchange rate is 97.07/A$. The Japanese manufacturer exports this machine to Australia. The Japanese inflation rate is 1.7% per annum and the Australian inflation rate is 2.5% per annum. Assume the purchasing power parity (PPP) holds. (i). Determine the machine's current price in Australia. (1 mark) (4 marks) (ii). Determine the price of this machine in Australia one year from now if there is a 85% pass-through of exchange rates