Problem 18-1 (algorithmic) Question Help Carambola de Honduras, Singer Wayne, a U.S.-based private equity firm, is trying to determine what it should pay for a tool manufacturing firm in Honduras named Carambola Singer Wayne estimates that Carambole wil generate a free cash flow of 10 million Honduran Lempiras (Lp) next year, and that this free cash flow will continue to grow of a constant rate of 7.5% per annum indefinitely Aprivate equity firm like Slinger Wayne, however, is not interested in owning a company for long, and plans to sell Carambola at the end of three years for approximately 10 times Carambola's tree cash flow in that year. The current pot exchange rate is Lp 15.3086/5, but the Honduran inflation rate is expected to remain at a relatively high ratio of 16.0% per annum compared to the US dollar inflation rate of only 1.5% per annum Singer Wayne expects to earn at least a 23% annual rate of retum on International investments like Carambola a. What is Carambola worth if the Honduran Lempira were to remain fixed over the three year investment period? b. What is Carambola worth if the Honduran empira were to change in value over time according to purchasing power parity? a. Calculate the free cash flows in Honduran Lempiras (Lp) below. (Round to the nearest whole number)