PART IV a) Assume the following information: Spot rate of $ 0.625 180 day forward rate of $10641 180 day British interest rate = 496 180 day US interest rate = 3% Based on this information is covered interest arbitrage by UK investors feasible (assuming a UK investor has 100,000 to possibly invest in the US)? Explain. (4 Marks) b) indicate the formula used to calculate the Net Present Value (NPV) of MNC evaluating a project to be implemented by its subsidiary. (2 Marks) (c) Capital budgeting of a MNC project can be conducted from of the viewpoint of the subsidiary or from the parent's viewpoint. There is always a difference betwee the two viewpoints. What the four factors that may cause such differences? (4 Mark) PART IV a) Assume the following information: Spot rate of $ =0.625 180 day forward rate of $1 = 0641 180 day British interest rate = 4% 180 day US interest rate = 3% Based on this information is covered interest arbitrage by UK investors feasible (assuming a UK investor has 100,000 to possibly invest in the US)? Explain. (4 Marks) b) Indicate the formula used to calculate the Net Present Value (NPV) of MNC evaluating a project to be implemented by its subsidiary. 2 Marks) (c) Capital budgeting of a MNC project can be conducted from of the viewpoint of the subsidiary or from the parent's viewpoint. There is always a difference betw the two viewpoints. What the four factors that may cause such differences? (4 Mark)