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Given the following information. Calculate the NPV for the project in USD. 1 WON = 7 USD This will remain constant for the next 2

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Given the following information. Calculate the NPV for the project in USD. 1 WON = 7 USD This will remain constant for the next 2 years A Project is being planned jin Korean by an U.S investor. The following information is given a) Duration=2 years b) Initial Investment/Outlay = 70Million(M) Won c) Price for Product in WON 20 in Year 1 Quantity Demanded - 1.00M 25 in Year 2 0.95M Variable cost C = 5 won/unit. Fixed cost = 3M won. Depreciation = 10% of initial outlay per year Taxes in Korea- 17%, Withholding tax=10% Current Exchange rate = 7 Won/USD, k = 15%

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