5. Delta Company, a US MNC is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR10,000. The annual cash flows over the five year economic life of the project in ZAR are estimated to be 3,000, 4,000, 5000, 6,000 and 7,000. The parent firm's cost of capital in dollars is 9.5 percent. Long-run inflation is forecasted to be 2 percent in annum in the United States and 7 percent in South Africa. The current spot rate (S(ZAR/USD) or USDZAR) is 14.045 as of May 7th, 2021. (a) Determine the NPV for the project in USD by calculating the NPV in ZAR using ZAR equivalent cost of capital and according to International Fisher equation and then converting to USD at the current spot rate. (b) Determine the NPV for the project in USD by converting all cash flows from ZAR to USD at PPP forecasted exchange rates and then calculating the NPV at the dollar cost of capital. (c) What is the NPV in dollars if the actual pattern of S(ZAR/USD) is: St=o=14.045; St=1=14.75; St=2=15.80; St-3=16.50; St=4=17.25; St-5=18.80