Carambola de Honduras. Slinger Wayne, a U$.$S$.-$based private equity firm, is trying to determine what it should pay for a tool manufacturing firm in Honduras named Carambola. Slinger Wayne estimates that Carambola will generate a free cash flow of $10$ million Honduran lempiras $($Lp$)$ next year $(2022),$ and that this free cash flow will continue to grow at a constant rate of $9\mathrm{.}0\%$ per annum indefinitely.

A private equity firm like Slinger Wayne, however, is not interested in owning a company for long, and plans to sell Carambola at the end of three years for approximately $10$ times Carambola's free cash flow in that year. The current spot exchange rate is Lp$23\mathrm{.}19=$ $$1\mathrm{.}00,$ but the Honduran inflation rate is expected to remain at a relatively high rate of $18\mathrm{.}0\%$ per annum compared to the U$.$S$.$ dollar inflation rate of only $1\mathrm{.}5\%$ per annum. Slinger Wayne expects to earn at least a $20\%$ annual rate of return on international investments like Carambola.

a$.$ What is Carambola worth if the Honduran lempira were to remain fixed over the three$-$year investment period?

b$.$ What is Carambola worth if the Honduran lempira were to chanqe in value over time accordina to purchasing Dower parity?

a$.$ What is Carambola worth if the Honduran lempira were to remain fixed over the three$-$year investment period?

Calculate the free cash flows in Honduran lempiras $(Lp)$ below: $($Round to the nearest whole number.$)$

$\backslash$table$[[,$Year $0,,$Year $1,,$Year $2,$Year $3],[$Carambola$\text{'}$s expected free cash flow,,Lp$,10,000,000,Lp,,$Lp$],[$Expected sale value in year $3,,,,,,$Lp$],[$Total expected cash flow,,$Lp,,$Lp$,,$Lp$],[$Expected exchange rate $($Lp$/$$$),23\mathrm{.}1900,,,,,],[$Carambola$\text{'}$s expected cash flow in US$$,,,,,,]]$