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 $14$ 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{.}72=$$$1\mathrm{.}00,$ but the Honduran inflation rate is expected to remain at a relatively high rate

of $16\mathrm{.}5\%$ per annum compared to the U$.$S$.$ dollar inflation rate of only $3\mathrm{.}5\%$ 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 change in value over time according to purchasing power 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.$)$