Reference no: EM132983063

Question - Perth International anticipates a 5.91 per cent increase in the year-one income of its subsidiaries in year two. It has information that the current 4.86 per cent, 7.24per cent, 13.44 per cent and 10.53 per cent nominal interest rate in Australia, China, India, Malaysia, respectively, will remain the same in the next three years. Due to foreign currency higher nominal interest rate, subsidiaries will invest 26 percent, 51 percent and 41 percent of their year two earning in China, India, and Malaysia, respectively for next year. Subsidiaries will remit their remaining income (ie. After investment) to the Australian parent. Perth International believe in the international Fisher Effects with considering a 2.73 percent real interest in Australia, China, India and Malaysia to calculate the expected foreign currency value against the Australian dollar for year two based on the year -one exchange ratesA$/CNY, A$/INR, A$/MYR. What is the total Australian Dollar (A$) cash flow for year -two?