Delta Company, a U$.$S$.$ MNC$,$ is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR$13,600.$ The annual cash flows over the five$-$year economic life of the project in ZAR are estimated to be $4,280,5,080,6,070,7,060,$ and $7,900.$ The parent firm$$s cost of capital in dollars is $9\mathrm{.}5$ percent. Long$-$run inflation is forecasted to be $3$ percent per annum in the United States and $7$ percent in South Africa. The current spot foreign exchange rate is ZAR per USD $=3\mathrm{.}75.$