Delta Company, a U$.$S$.$ MNC$,$ is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR$12600.$ The annual cash flows over the five$-$year economic life of the project in ZAR are estimated to be $3\mathrm{.}780,4\mathrm{.}780,5\mathrm{.}770,6\mathrm{.}760,$ and $7\mathrm{.}650.$ 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$/$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 dollar NPVs different or the same? multiple choice Different Same d$.$ What is the NPV in dollars if the actual pattern of ZAR$/$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$(4)=6\mathrm{.}9$ and S$(5)=7\mathrm{.}2$