Practice: International Capital Budgeting The South Korean multinational manufacturing firm, Nam Sung Industries, is debating whether to invest in a 2-year project in the United States. The project's expected dollar cash flows consist of an initial investment of $1 million with cash inflows of $680,000 in Year 1 and $650,000 in Year 2. The risk-adjusted cost of capital for this project is 12%. The current exchange rate is 1,080 won per U.S. dollar. Risk-free interest rates in the United States and S. Korea are: 1. 2- Year Year 4.25% 4.50% U.S. S. Korea 3.25% 3.50% 1. If this project were instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? 2. What is the expected forward exchange rate 1 year from now and 2 years from now? (Hint: Take the perspective of the Korean company when identifying home and foreign currencies and direct quotes of exchange rates.) 3. If Nam Sung undertakes the project, what is the net present value and rate of return of the project for Nam Sung