$15.$ Kydland is considering purchasing a firm in Uruguay. Kydland expects the firm to generate $100,000$ Uruguayan peso cash flow in each of the next two years. Then Kydland expects to sell the firm for $500,000$ Uruguayan pesos. Kydland$$s required rate of return is $20\%.$ The current spot rate for the Uruguayan peso is $$0\mathrm{.}232.$ Kydland expects the spot rate to be $$0\mathrm{.}22$ one year and $$0\mathrm{.}20$ in two years. The Uruguayan firm has $10,000$ shares outstanding.

a$.$ What is the maximum Uruguayan peso price per share that Kydland would be willing to pay for the firm today? $($Hint: First find the present value of each year$$s cash flow in U$.$S$.$ dollars then find the peso price.$)$

b$.$ Kydland purchased the Uruguayan firm. At the end of the first year a U$.$S$.$ based private equity fund offered to buy the Uruguayan firm for $$90,000.$ The spot rate for the Uruguayan peso at the end of year $1$ is $$0\mathrm{.}20$ and Kydland expects the spot rate to be $$0\mathrm{.}2$ at the end of year $2.$ Find the net present value of divestiture. $($Hint: NPV of divestiture$=$PV of the offer$-$PV of the cost of accepting the offer$)$

c$.$ After Kydland received the offer above, the U$.$S$.$ dollar appreciated. What happened to the net present value of divestiture?

d$.$ After Kydland received the offer above, the risk free interest rate in the United States decreased. What happened to the net present value of divestiture?