Delta Company, a U.S. MNC, is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZARM,400. The annual cash flows over the five-year economic life of the project in ZAR are estimated to be 3,420, 4,420, 5410, 6,400 and 7,350. The parent firm's cost of capital in dollars is 9.5 percent. Long-run inflation is forecasted to be 3 percent per annum in the United States and 7 percent in South Africa. The current spot foreign exchange rate is ZAR per USD = 3.75. Required: Complete this question by entering your answers in the tabs below. i Required A E Required B Required C Required D Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at the current spot rate. Note: Do not round the intermediate calculations. Round the final answer to the nearest whole number. NPV in USD using fisher effect : Required A Required B Required C Required D Converting all cash flows from ZAR to USD at purchasing power parity forecasted exchange rates and then calculating the NPV at the dollar cost of capital. Note: Do not round the intermediate calculations. Round the final answer to the nearest whole number. NPV in USD using PPP ratesRequired A Required B Required C ! Required D ! What is the NPV in dollars if the actual pattern of ZAR/USD exchange rates is: 5(0) = 3.75, 5(1) = 5.7, S(2) = 6.2, 5(3) = 7.2,5(4) =7.2,and 5(5) = 7.5? Note: Negative amount should be shown with a minus sign. Do not round the intermediate calculations. Round the final answer to the nearest whole number. Show less A NPV in USD using actual pattern $ 1,699