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 $=3\mathrm{.}75.$

A$.$ Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at the current spot rate.

B$.$ Converting all cash flows from ZAR to USD at purchasing power parity forecasted exchange rates and then calculating the NPV at the dollar cost of capital.

C$.$ Are the two USD NPVs different or the same?

D$.$ What is the NPV in dollars if the actual pattern of ZAR per USD exchange rates is: S$(0)=3\mathrm{.}75,$ S$(1)=5\mathrm{.}7,$ S$(2)=6\mathrm{.}2,$ S$(3)=6\mathrm{.}5,$ S$(4)=6\mathrm{.}6,$ and S$(5)=6\mathrm{.}9?$