Q. 14

Templeton Engineering plans to invest in a project in Singapore. The project requires an initial investment of SGD 602,000 and is expected to produce cash inflows of SGD188,000 a year for four years. The risk-free rate in Singapore is 2.60 percent and the risk-free rate in the U.S. is 2.10 percent. The current spot rate is SGD1 = USD.72. The company's required return on US dollar investment of this type is 9.45%. What is the net present value of this project in U.S. dollars? $4,341 $7,179 $18,699 $30,219 $41,739