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indefinitely. dollar inflation rate of only 2 . 0 % per annum. Slinger Wayne expects to earn at least a 2 1 . 5 %

indefinitely.
dollar inflation rate of only 2.0% per annum. Slinger Wayne expects to earn at least a 21.5% annual rate of return on international investments like Carambola.
a. What is Carambola worth if the Honduran lempira were to remain fixed over the three-year investment period?
b. What is Carambola worth if the Honduran lempira were to change in value over time according to purchasing power parity?
a. What is Carambola worth if the Honduran lempira were to remain fixed over the three-year investment period?
Calculate the free cash flows in Honduran lempiras (Lp) below: (Round to the nearest whole number.)
Year 0
Carambola's expected free cash flow
Expected sale value in year 3
Total expected cash flow
Year 1
Year 2
Year 3
Lp
Lp
Lp
Lp
Lp
Carambola's expected cash flow in US$
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