Fly-By-Night Couriers are analysing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The forecasts of Fly-By-Night show that the purchase would increase its annual after-tax earnings by R600 000 indefinitely. The following information about the two companies is available: The appropriate discount rate for the incremental cash flows is 8%. Question 3 (12 marks) A South African company, Forever Young (Pty) Ltd., intends to import 250000 worth of cosmetics from France and will make payment in euros three months from now. The foreign exchange spot rate of the South African rand to the euro is R18/. Annual interest rates in South Africa and France are 8.75% and 1.75%, respectively