Question 32 Not yet answered Marked out of 4.00 Flag question K-Roo Ltd. wants to invest in a project in New Zealand. The project has the following expected cash flows (in NZD): Yro Yr1 Yr2 Yr3 Yr4 -9.4 19.3 18.1 13.3 17.5 K-Roo has access to the following extra information: Australian corporate tax rate: 30% New Zealand corporate tax rate: 30% Australian risk-free rate: 5.2% New Zealand risk-free rate: 1.7% Australian inflation: 5.1% New Zealand inflation: 3% Current spot NZD/AUD exchange rate: NZD0.66/AUD. Required rate of return for this project in Australia: 3.8% Required rate of return for this project in New Zealand: 5.9% Suppose that 33% of the funds are blocked in New Zealand where they earn no return, until one year after the project finishes. If PPP holds, what is the NPV of the project in AUD? a. 38.1467 b. 74.8768 c. 50.0768 d. 21.2134 e. 21.6085