Quantitative Problem: International Machinery Company $($IMC$)$ is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering

undertaking a $1-$year project in the United States. The project's expected dollar$-$denominated cash flows consist of an initial investment of $$2,950$ and a cash inflow the

following year of $$3,550.$ IMC estimates that its risk$-$adjusted cost of capital is $15\%.$ Currently, $1$ U$.$S$.$ dollar will buy $9\mathrm{.}3$ Swedish kronas. In addition, $1-$year risk$-$free

securities in the United States are yielding $6\%,$ while similar securities in Sweden are yielding $5\%.$

a$.$ If the interest parity holds, what is the forward exchange rate of Swedish kronas per U$.$S$.$ dollar? Do not round intermediate calculations. Round your answer to four

decimal places.

Swedish kronas per U$.$S$.$ dollar

b$.$ If IMC undertakes the project, what is the net present value and rate of return of the project for IMC in home currency? Do not round intermediate calculations. Round

your answers to two decimal places.

NPV:

Swedish kronas

Rate of return:

$\%$