For its U S projects, Ulysses uses a cost of equity of $9\%$ and a cost of capital of $7\mathrm{.}5\%,$ but it believes that the country risk in Vietnam supports an additional risk premium of $3\%.$ You expect the Dong to depreciate $6\%$ versus the USD.Ulysses Inc., a US$-$based construction company, is considering investing in a $4-$year

project in Vietnam, funded with $100$ million Vietnamese Dong in debt, which will be

paid down over the four$-$year life. You have the following forecasted cashflows $($in

Vietnamese Dong$)$:

For its U S projects, Ulysses uses a cost of equity of $9\%$ and a cost of capital of $7\mathrm{.}5\%,$ but

it believes that the country risk in Vietnam supports an additional risk premium of $3\%.$

You expect the Dong to depreciate $6\%$ versus the USD.

a$.$ What is the appropriate discount rate?

b$.$ What is the present value of the above cash flows in USD?

c$.$ What growth rate would you use after year $4?$

d$.$ Using the cash flows above and the growth rate after year $4,$ what is the value of

all cash flows, for the next for years and after that?

e$.$ Would you change$/$eliminate any of the adjustments from net income to cash

flows?