A project in Bhutan uses $100 of imported goods, and 2000 Rupees worth of domestic labour, paid at the minimum wage, to produce exported goods worth $200 on world markets. The opportunity cost of labour in Bhutan is estimated to be 40% of the minimum wage. The official exchange rate is 15 Rupees = $1, and the shadow-exchange rate is 20 Rupees = $1.

(i) Work out the NPV of the project:

a. using the UNIDO approach

b. using the LM approach.

(ii)What is the relationship between the two values?