Asiatic Express is a US firm and is considering starting a project in Malaysia. The project would end in 4 years. The expected (required) rate of return is 20%. It requires an initial investment of $100,000 Malaysian dollars and the following yearly cashflows (all in Malaysian dollars) are: $30,000 in year 1,

$50,000 in year 2, $70,000 in year 3, $90,000 in year 4.

Question 1 The spot rate for Malaysian dollars is $0.23 US dollars. What is the initial investment required in US dollars? (2 point)

Question 2 What is the cash flow to the parent in US dollars for year 1, year 2, and year 3? (3 points)

Question 3 What is the cumulated NPV at the end of year 3? (4 points) (use 2 decimal places for answers where required, remember to convert all in US dollars)

Question 4 For Asiatic Expresss new project, in year 1, if the demand of the product is 1,500 units and price per unit is $25, what is the total revenue? (2 points)

Question 5 What are the Projected expenses + all taxes amount for Asiatic Express for year 1? (2 points) (Hint: Revenue - cash flow)