XYZ Corporation imports goods from China with a total invoice value of $10,000,000. The exchange rate between the US dollar (USD) and the Chinese yuan (CNY) is 1 USD = 6.95 CNY. However, due to a temporary market fluctuation, XYZ Corporation negotiates a discount of 2% on the invoice value. What is the total amount in Chinese yuan that XYZ Corporation needs to pay after applying the discount?

XYZ Corporation imports goods from China with a total invoice value of $10,000,000. The exchange rate between the US dollar (USD) and the Chinese yuan (CNY) is 1 USD = 6.95 CNY. However, due to a temporary market fluctuation, XYZ Corporation negotiates a discount of 2% on the invoice value. What is the total amount in Chinese yuan that XYZ Corporation needs to pay after applying the discount?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 8P

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