Profitability of a Foreign Investment

Hi! I need two questions answered, each question has to be 1 page and a half long!

1. Explicate the reason a currency appreciation (depreciation) increases (decreases) the profitability of a foreign investment. Direct your explication to the conversion of debt payment (principal and interest) and dividends from the foreign currency, let us say, ringgit to dollars. Everything else presupposes remains constant

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2. How would the results of problem one alter, if we additionally had additional sales to China, and the renminbi revalued against the rupee by 10% yearly for the next 6 years? Presuppose the volume of sales in China are double what they are in India in the beginning. Also, presuppose the price elasticity of demand is – 3 for the product in China. Presuppose secondly the expenses are incurred in rupees.

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