Carambola de Honduras. Slingor Woyno, a U S, abased private equity firm, as trying to determine what it should pay for a tool manufacturing firm in Honduras named. Carambole. Stinger Wayne ectimates that Carambola will generale a free cash fow of 11 milion Honduran leonpiras (Lp) next yoar, and that this friet ciah ficur wat continue to grow at a coristant rate of 800p per antum indefinilely. A private equity firm like Sanger Wiyne, however, is not interestod in owning a company for long, and plans to sel Carambola al he end of thee year itor approximalely 10 timos Carambola's froo cosh fow in that year. The current spot exchango rate is Lp14 Or68s, but the Honouran inthation rate is expected to remain rate of return on international investments like Carambola a. What is Carambola worth if the Honduran lempaa were to remain foced over the threo-year ifvestment pariod? b. What is Carambola worth if the Honduran iompira were to change in value ovor time according to purchasing power party? a. Calculate the free cashi fows in Honduran lempiras (Lp) below: (Round to the noarest whole number) Carambola de Honduras: Slinger Wayne, a U.S.-based privale 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 11 million Honduran lempiras (Lp) next year, and that this free cash flow will contirue to grow at a constant rate of 8.0% per annum indefinitely. A private oquity 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 Carambolars free cash flow in that year. The current spot exchange rate is Lp14.9168/\$, but the Honduran inflation rate is expected to remain at a relatively high rate of 14.0% per anmum compared to the U.S. dotar inflation rate of only 1.5% per annum. Slingor Wayne expects to earm 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 lempia were to change in value over time according to purchasing power parity? a. Calculate the free cash flows in Honduran lempiras (Lp) below: (Round to the nearest whole number.) Carambola de Honduras. Slinger Wayne, a U.S.-based private equity firm, is trying to determine what it should pay for a Carambola. Slinger Wayne estimates that Carambola will generate a free cash flow of 11 million Honduran lempiras (LP) continue to grow at a constant rate of 8.0% per annum indefinitely. A private equity firm like Slinger Wayne, however, is not interested in owning a company for long, and plans to sell Caraml approximately 10 times Carambola's free cash flow in that year. The current spot exchange rate is p14.9168/$, but the H at a relatively high rate of 14.0% per annum compared to the U.S. dollar inflation rate of only 1.5% per annum. Slinger Wa 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 pat a. Calculate the free cash flows in Honduran lempiras (Lp) below: (Round to the nearest whole number.)
