Camacho Enterprises is a U.S. company that is considering expanding by acquiring Xtapa, Inc., a firm in Mexico. The acquisition is expected to increase Camacho’s free cash flows by 21 million pesos the first year;

this amount is then expected to grow at a rate of 8% per year. The price of the investment is 525 million pesos, which is $52.5 million at the current exchange rate of 10 pesos/$. Based on an analysis in the Mexican market, Camacho has determined that the appropriate after-tax peso WACC is 12%. If Camacho has also determined that its after-tax U.S. dollar WACC for this expansion is 7.5%, what is the value of the Mexican acquisition? Assume that the Mexican and U.S. markets for risk-free securities are integrated and that the yield curve in both countries is flat. The U.S. risk-free interest rates are 6%, and Mexican risk-free interest rates are 9%.