Question 3 A. Suppose that a foreign project has a beta of 0.85, the risk-free return is 12 percent, and the required return on the market is estimated at 19 percent. What is the cost of capital for the project? (5 marks) B. ABC Computer is a US firm that produces its machines in Asia with components largely imported from the United States and sells its products in various Asian nations in local currencies. i. Explain how strengthening of dollar will likely impact the ABC's Asian profits. (7 marks) ii. What hedging technique(s) can ABC employ to lock in a desired currency conversion rate for its Asian sales during the next year? (7 marks)