A chinese firm forcasts that an investment in the Democratic Republic of the Congo will result in cash flows of 1,000,000,000 Congolese Francs per year for three years. The upfront investment is 2,000,000,000 Congolese Francs. The forcasted exchanged rates are:

year 0: 0.00689 CNY/CDF

year 1: 0.00685 CNY/CDF

year 2: 0.00680 CNY/CDF

year 3: 0.00680 CNY/CDF

what is the NPV for the parent company at WACC 12%

a.) CNY 545,217

b.) CNY 2,597,095

c.) CNY 3,238,456

d.) CNY 5,124,688

Question 3 (5 points) A Chinese firm forecasts that an investment in the Democratic Republic of the Congo will result in cash flows of 1,000,000,000 Congolese Francs per year for three years. The upfront investment is 2,000,000,000 Congolese Francs. The forecasted exchange rates are: Year O: 0.00689 CNY/CDF; Year 1 0.00685 CNY/CDF; Year 2: 0.00680 CNY/CDF; and Year 3: 0.00680 CNY/CDF. What is the NPV for the parent company at WACC=12%? CNY 545,217 CNY 2,597,095 CNY 3,238,456 CNY 5,124,668