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3) You are considering a project in South Africa which has an initial cost of R385000/ The project is expected to return a one time

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3) You are considering a project in South Africa which has an initial cost of R385000/ The project is expected to return a one time payment of R428900 four years from now. The risk free rate of return is 3.5% in the US and 2.45 in South Africa The Inflation rate is 4% in the US and 3% in South Africa. Currently you can buy R10.48 for $1. How much will the payment of R428900 be worth in USD three years from now assuming PPP holds $84258.36 a Ob. $62129.18 $42129.18

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