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Please can someone help with this and show workings so I can understand where the inflations are added. The research department of a large financial

Please can someone help with this and show workings so I can understand where the inflations are added.

The research department of a large financial institution provided inflation expectations for the next five years. According to the forecasts, UK will have 1.75% more inflation than France and 3.5% higher inflation than South Korea. On the basis of this new evidence, would you consider your proposal with regard to financing the Korean factory? Explain your answer.Thankyou in advance.

year

year

year

year

year

year

total payments

0

1

2

3

4

5

initial investments (KRW)

200,000.00

interest rate in uk (5-year loan)

0.09

interest rate in south korea (5-year loan)

0.15

interest rate in france (5-year loan)

0.12

exchange rate: KRW per GBP

4% per annum

2,000.00

2,000.00

2,080.00

2,163.20

2,249.73

2,339.72

2,433.31

forecasted exchange rate: EUR per GBP

3% per annum

1.18

1.18

1.22

1.26

1.30

1.34

1.38

korean debt in millions KRW

IR 0.15

200,000.00

200,000.00

230,000.00

264,500.00

304,175.00

349,801.25

402,271.44

UK debt in millions GBP

IR 0.09

100.00

100.00

109.00

118.81

129.50

141.16

153.86

French debt in millions EUR

IR 0.12

118.00

118.00

132.16

148.02

165.78

185.67

207.95

GBP converted to KRW

218,000.00

237,620.00

259,000.00

282,320.00

307,720.00

307,720.00

EUR converted to KRW

264,320.00

296,040.00

331,560.00

371,340.00

415,900.00

415,900.00

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