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please show work. thanks a lot! (15 points) Alpha Inc. is contemplating on investing in a manufacturing facility in China. As a consultant, you are
please show work. thanks a lot!
(15 points) Alpha Inc. is contemplating on investing in a manufacturing facility in China. As a consultant, you are charged with doing the financial analysis for this project. You expect the cash flows (in Chinese RMB) for this project to last indefinitely. You estimated the following cash flows for 2022-2026 and that the cash flows will grow at a constant rate starting 2027. a) What is the appropriate discount rate you should use to discount the RMB cash flows? b) What is the RMB NPV and IRR for this project? (If Excel is used, please cut and paste it here, showing all the cash flows and answers to this question.) c) What is the USD NPV for this project? (Please show your calculation converting RMB NPV to USD NPV.) d) What are the i) RMB cost of capital and ii) RMB NPV if inflation in China rises to 7% and the U.S. inflation drops to 1% Step by Step Solution
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