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7. Global NPV: Walmart is considering purchasing a discount retail chain in Brazil. Discount the following Brazilian real (the real is the brazilian currency) cash
7. Global NPV: Walmart is considering purchasing a discount retail chain in Brazil. Discount the following Brazilian real (the "real" is the brazilian currency) cash flows using forecasted IRP exchange rates. Use a discount rate of 15%. After 5 years the cashflows will grow at a constant perpetual rate. Estimate 5 years of FCFF and then apply a growth perpetuity to compute FCF from 6 to infinity. Repatriation tax applies to both the FCFF annual forecasts and the growth perpetuity value. Compute the IRR using goal seek (remember the IRR function does not work with growth perpetuities, so you must use goal seek). The discount rate already includes a sovereign risk premium
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