19 Assume that you are the chief financial officer of XYZ Corp, a New Zealand copper mining company with operations in Vietnam. Your capital budgeting departments has presented a proposal to you for a 5-year mining project in Vietnam. Your team has converted future VND (Vietnamese dong) cash flows to NZD cash flows using forward rates. The expected year-end net NZD cash flows are as follows: Year 1 2 3 4 5 Cash Flow NZ$250,000 350,000 380,000 400,000 500,000 (a) After consulting your advisers, you decide that the probability of expropriation is 30% in each year. Also assume that you will receive a compensation of $100,000 NZD in the case of expropriation. The probability adjusted cash flow in year 5 is $ NZD. Note: Please do not round any intermediate calculations and provide your final answer as an integer, for example 123456 (b) The NZD discount rate for a copper mining project is 9%. The credit default swap spread for USD bonds issued by Vietnamese government is 4%. The NZD discount rate for probability-adjusted cash flows in this project is Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is 12.34%, type in 12.3). %. Maximum marks: 4