QUESTION 19

1. Wizz Company plans to invest in a project in Singapore. The project requires an initial investment of SGD592,000 and is expected to produce cash inflows of SGD198,000 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. Wizz's required return on US dollar investment of this type is 10%. What is the net present value of this project in U.S. dollars?

   	a	$32,910
   	b	$16,347
   	c	$28,533
   	d	$20,328
   	e	$24,656