5. Leclanch's financial manager will use the below parity equation to estimate the Taiwan dollar US dollar (TWD/USD) exchange rate for each year of the project. Though technical accu- racy requires separate estimates of rf TW and rf US for each year, in the interest of simplicity, the firm will assume that one risk-free rate is appropriate for each country over the life of the project. Complete Table 2 on page 8 Assume: rf TW=10 percent rf US =7 percent Parity equation Where: (Ec/Eo) = [(1+rftw)/(1+rfus)]' E Et rf NTD rf USD =NTD / Dollar at time 0 =NTD / Dollar at time t =risk free interest rates in Taiwan for an investment of t years =risk free interest rates in USA for an investment of t years Table 2: Exchange rates based on real interest rates Year TWD/USD 0.0320 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 t=0 t=1 t=2 t=3 t=4 t=5 t=6 t=7 t=8 t=9 t=10 5. Leclanch's financial manager will use the below parity equation to estimate the Taiwan dollar US dollar (TWD/USD) exchange rate for each year of the project. Though technical accu- racy requires separate estimates of rf TW and rf US for each year, in the interest of simplicity, the firm will assume that one risk-free rate is appropriate for each country over the life of the project. Complete Table 2 on page 8 Assume: rf TW=10 percent rf US =7 percent Parity equation Where: (Ec/Eo) = [(1+rftw)/(1+rfus)]' E Et rf NTD rf USD =NTD / Dollar at time 0 =NTD / Dollar at time t =risk free interest rates in Taiwan for an investment of t years =risk free interest rates in USA for an investment of t years Table 2: Exchange rates based on real interest rates Year TWD/USD 0.0320 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 t=0 t=1 t=2 t=3 t=4 t=5 t=6 t=7 t=8 t=9 t=10