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T&T, a US firm, has a Chinese subsidiary that manufactures and sells TVs in China. Current exchange rate: CNY6.25/USD Expects to sell 2000 TVs this
T&T, a US firm, has a Chinese subsidiary that manufactures and sells TVs in China.
Current exchange rate: CNY6.25/USD
Expects to sell 2000 TVs this year at CNY2800 each.
Main input is priced in USD (USD120/unit)
Fixed cost=CNY2M
Depreciation = CNY0.9 million
Tax rate=30%; assuming tax credits are available for immediate use if losses occur
What are the operating cash flows in CNY and dollars? Please select the most suitable option
a. | CNY 1,284,960 and USD 204,611 | |
b. | CNY 1,369,960 and USD 218,146 | |
c. | CNY 1,369,960 and USD 277,955 | |
d. | CNY 1,740,000 and USD 278,400 |
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