Farbucks is thinking of expanding to South Korea. The current indirect rate for dollars and South Korean won is $1,014$ won per dollar. The expected inflation rate in South Korea should hover near $0\mathrm{.}9\%$ for the next five years. The expected U$.$S$.$ inflation rate should stay around $3\mathrm{.}1\%.$ The discount rate for expanding is $14\%$ 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 $90,000,000$ won per coffee shop

Year $1$ cash flow:$20,000,000$ won

Year $2$ cash flow:$30,000,000$ won

Year $3$ cash flow:$70,000,000$ won

Year $4$ cash flow:$90,000,000$ won

Year $5$ cash flow:$40,000,000$ won

Domestic currency approach in multinational capital budgeting consists of the following steps:

Step $1$: Calculate the forward exchange rates.

Step $2$: Convert all cash flows in foreign currency into dollars using current 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 outflow and inflow.

Step $5$: Accept the project if its net present value $($NPV$)$ is positive and reject if negative.

First, complete step $1$ by calculating the forward rates.$$

The current indirect exchange rate is $1,016$ for dollars and South Korean won. The inflation rate in South Korea is expected to hover near $0\mathrm{.}9\%$

for the next five years and the U$.$S$.$ inflation rate is expected to stay around $3\mathrm{.}1\%.$ What is the $1-$year forward indirect rate for dollars and South Korean won?

won per $$($Round to four decimal places.$)$

What is the $2-$year forward indirect rate for dollars and South Korean won?

won per $$($Round to four decimal places.$)$

What is the $3-$year forward indirect rate for dollars and South Korean won?

won per $$($Round to four decimal places.$)$

What is the $4-$year forward indirect rate for dollars and South Korean won?

won per $$($Round to four decimal places.$)$

What is the $5-$year forward indirect rate for dollars and South Korean won?

won per $$($Round to four decimal places.$)$

Second, complete step $2$ by converting the cash flows into dollars.

What is the dollar amount of the initial investment, CF$0?$

$$($Round to the nearest cent.$)$

What is the dollar amount of cash flow in year $1,$ CF$1?$

$ $($Round to the nearest cent.$)$

What is the dollar amount of cash flow in year $2,$ CF$2?$

$$($Round to the nearest cent.$)$

What is the dollar amount of cash flow in year $3,$ CF$3?$

$$($Round to the nearest cent.

$)$What is the dollar amount of cash flow in year $4,$ CF$4?$

$$($Round to the nearest cent.$)$

What is the dollar amount of cash flow in year $5,$ CF$5?$

$$($Round to the nearest cent.$)$