June 2015 - Question 1

You will have to be more specific as to which figures you are not clear about. The Yilandwe Rand cash flows are converted to $'s at the relevant exchange rates and then the extra earnings in $'s (the contribution on the goods sold and the royalties) are added on.

How do I calculate the amount (479290) for the line titled 'Remittable flows' in year 0. Similarly, how do I calculate the amount (16370) in year 1.

The time 0 flow in YR is 48,600 million, This is converted at the exchange rate of 101.4, and therefore the remittance in $'s is 48,600M / 101.4 = $479,290 thousand. Similarly, 1966 million YR converted at an exchange rate of 120.1 gives 1966M / 120.1 = $16,370 thousand.