How much the haier-china will make a profit or loss in cny

Assignment Help Financial Accounting
Reference no: EM132770870

Problem 1: Haier-China can borrow fund in China with an interest rate of 11.06% to invest 1.77 million Australian dollars (A$) and expected return of A$1.96 million next year. Assume that Haier-China and Biopharma-Australia engages in a parallel loan in which the Biopharma-Australia gives Haier-China A$1.77 million in exchange for a loan in Chinese yuan (CNY) at the current exchange rate CNY3.3848/A$. These loans will be repaid by both parties at the end of one year. Assume that next year, Haier-China will pay Biopharma-Australia 14.45% interest on A$1.77 million and that the Biopharma-Australia will pay Haier-China 7.28% interest on the Chinese yuan loan. Also, Haier-China believes that the A$ will appreciate to CNY3.5106/A$ next year. How much the Haier-China will make a profit or loss in CNY from this parallel loan agreement in one year. (enter the whole number without sign or symbol)

Reference no: EM132770870

Questions Cloud

Medium conditions for streptococcus pneumonia : What is the culture medium conditions for streptococcus pneumonia to achieve its optimal growth.
Prepare the income statement and statement of owner equity : Feather Light Travelling Trains has completed, Prepare the income statement, statement of owner's equity, and balance sheet.
Determining the key impact on the audit plan : Undertake materiality calculations to assist in Analytical Review and Audit Planning - Summarizing the data that we got from the worksheets
Significance in acinetobaacter baumannii isotopes : What is the significance in Acinetobaacter baumannii isotopes being resistant to multiple antibiotics?
How much the haier-china will make a profit or loss in cny : How much the Haier-China will make a profit or loss in CNY from this parallel loan agreement in one year. (enter the whole number without sign or symbol)
Prepare the relevant journal entries for tam : Hinshaw uses a 6% discount rate. Prepare the relevant journal entries for 2020 and 2021 under IFRS for Hinshaw relating to the dismantling costs.
Calculate the total dollar interest cost on the loan : Assume that the loan is rolled over each loan period throughout the year under the same conditions and terms. Calculate the effective annual rate of interest.
Calculate relaxation of credit standards : Calculate and analyze on the each Relaxation of credit standards scenarios, then which scenario should be implemented and why
Orgins of cell membranes and bacterial cell walls : What are the orgins of Cell Membranes and Bacterial Cell Walls?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Uses the effective-interest method

A company issued $15,000,000 of 8% debentures on May 1, 2017 and received cash totaling $13,308,942. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Usi..

  What is the interest rate associated with the loan

If you borrow a princcipal amount of $5000 and are required to repay the loan in five equal installments of 1800, what is the interest rate associated with the loan?

  Wiggins associates enters into a contract

Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four months and is intended to achieve significant cost savings at the university

  What does the market believe the return on new investment

What does the market believe the return on new investment will be for ClapTrap when it reaches its stable growth perpetuity phase.

  Revaluation for building and impairment loss for machinery

MAA261 FINANCIAL ACCOUNTING ASSIGNMENT - CASE DATA FOR GYM LIFE PTY LTD. Record the revaluation for the building and impairment loss for the machinery

  How much is the realized gross profit or loss

How much is the realized gross profit/loss during 2019? Mary Corporation was contracted to construct a warehouse for a price of P13,600,000.

  Explain traditional case for international diversification

Explain the traditional case for international diversification. What are some features of alternative investments? Describe at least two

  Define the internal and external users of accounting data

BUS-FP3061: Define the internal and external users of accounting data. What data would each group most likely want to review? Provide examples of each user type.

  Temporary differences between operating income

Dix, Inc., a calendar-year corporation, reported the following operating income (loss) before income tax for its first three years of operations: Year 1 $100,0

  Which all of the expenditures should be capitalized except

A firm acquired new equipment for its manufacturing operation. According to U.S. GAAP, all of the expenditures should be capitalized except

  What was gross profit for randy''s spa

What was Gross Profit for Randy's Spa Supplies in February and What was the Gross Profit rate for Randy's Spa Supplies in February

  Contrast standard deviation and beta as two measures of risk

Contrast standard deviation and beta as two measures of risk. Under which circumstances is standard deviation the appropriate measure of risk

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd