Domestic NPV approach. Farbucks is thinking of expanding to South Korea. The current indirect rate for dollars and South Korean won is 1,005 won per do The expected infation rate in South Korea should hover near 0.8% for the next five years. The expected U.S. inflation rate should stay around 3.9%. The discount rate for expanding is 15% for Farbucks. Given the following projected cash flows for the expansion project, use the domestic NPV approach to determine whether Farbucks should expand to South Korea. Year 0: initial investment costs of 85,000,000 won per coffee shop Year 1 cash flow. 25,000,000 won Year 2 cash flow, 35,000,000 won Year 3 cash flow, 65,000,000 won Year 4 cash flow. 90,000,000 won Year 5 cash flow. 45,000,000 won Domestic currency approach in multinational capital budgeting consists of the following steps: Step 1: Caiculate the forward exchange rates. Step 2. Convert all cash flows in foreign currency into dollars using curtent and forward exchange rates Step 3: Convert all future dollars into present value with the domestic discount rate Step 4. Add the net present value of the outlow and inflow. Step 5: Accept the project if its net present value (NPV) is positive and reject if negative