a. (i) UK based corporation XYZ Inc. just constructed a manufacturing plant in Indonesia. The construction cost 9 billion Rupiah. XYZ Inc intends to leave the plant open for three years. During the three years of operation, cash flows are expected to be 3 billion Rupiah, 3 billion Rupiah, and 2.5 billion Rupiah, respectively. Operating cash flows will begin one year from today and are remitted back to the parent at the end of each year. At the end of the third year, XYZ expects to sell the plant for 3.5 billion Rupiah. XYZ has a required rate of return of 14.5 percent. It currently takes 8,750 Rupiah to buy one pound, and the Rupiah is expected to appreciate by 3 percent per year. Determine the NPV for this project. Should XYZ Inc. build the plant? What is the impact to NPV in HC and NPV in FC if exchange rate (i) follows parity theorem and (ii) did not follow parity theorem. (10 marks)