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4 . A Canadian firm is evaluating an investment in Indonesia. The project costs 5 0 0 billion Indonesian Rupiah and is expected to produce

4. A Canadian firm is evaluating an investment in Indonesia. The project costs 500 billion Indonesian Rupiah and is expected to produce an income of 250 billion Indonesian Rupiah in a year in real terms for each of the next three years. The expected inflation rate in Indonesia is 12% per year. And the firm estimates that an appropriate discount rate for the project would be about 8% above the risk-free rate of interest. Calculate the net present value of the project in dollars. Assume a spot rate exchange rate of $0.000112/ Rupiah. The interest rate is about 15% in Indonesia and 5% in Canada. Please provide calculations and final answer

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