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pls calculate all questions thx so much Question: XYZ, a US MNE, is thinking of making a foreign capital investment in South Africa. The initial

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pls calculate all questions thx so much
Question: XYZ, a US MNE, is thinking of making a foreign capital investment in South Africa. The initial cost of the project is ZAR 10,000 . The expected cash flows from the project over the coming five years are ZAR3,000, 4,000,5,000,6,000, and 7,000 respectively. Long-run inflation is forecasted to be 3% per annum in US and 7% in South Africa. The current spot exchange rate is USD/ZAR = 0.25 . The financial data regarding XYZ are found as: XYZ's beta based on CAPM is 1.1 ; market return is 14%, risk-free rate is 3%, equity to total assets ratio is 70%, before-tax cost of debt is 7%, corporate tax rate is 20% a) Find the XYZ's weighted average cost of capital (USD). b) Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at the current spot rate. c) Converting all cash flows from ZAR to USD at purchasing power parity forecasted exchange rates and then calculating the NPV at the dollar cost of capital. d) Are the two dollar NPV different or the same? Explain e) What is the NPV in USD if the actual pattern of USD/ZAR exchange rate is S(0)=0.2667, S(1)=0.1754,S(2)=0.1493,S(3)=0.1389,S(4)=0.1299 and S(5)=0.1220

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