Aicol Sdn Bhd has received an order to export medical gloves to Australia under the terms of the letter of credit (L/C) and the said L/C must be issued by the Bank on behalf of the importer, DEF Ltd. The face value of the shipment, AUD 350,000, will be paid 90 days after the Bank accepts the draft. The current discount rate is 8.0 per cent per annum and the 90-day acceptance fee is 3.0 per cent per annum. In addition, there is a flat commission rate equal to 0.5 per cent of the face amount if it is sold. The spot rate and 90-day forward rate is MYR3.0400/AUD and MYR3.0520/AUD, respectively, and Aicol Sdn Bhd estimates its weighted average capital cost at 10% per year.
ii) How much is it going to receive (in MYR) if it sells the contract immediately? (3 marks)
Aicol Sdn Bhd has received an order to export medical gloves to Australia under the terms of the letter of credit (L/C)
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answerhappygod
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