Delta Company, a U.S. MNC, is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR12,200. The annual cash flows over the five-year economic life of the project in ZAR are estimated to be 3,660, 4,660, 5,650, 6,640, and 7,550. The parent firms cost of capital in dollars is 9.5 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 = 3.75.

1. What is the NPV in dollars if the actual pattern of ZAR per USD exchange rates is: S(0) = 3.75, S(1) = 5.7, S(2) = 6.2, S(3) = 6.5, S(4) = 6.9, and S(5) = 7.2?