Question 4 Hibiscus Berhad is considering making an investment in three projects in Belgium. The initial investment and after-tax cash inflows associated with each project are shown in the following table: Project X Project Y Project Z Cash flows '000 '000 '000 Initial investment Cash inflows, years 1-3 50 30 100 150 50 40 The current spot exchange rate is 0.93 per USD1. The current risk-free rate in Belgium is 5.8% compared to the United States of 3.2%. The required rate of return for this investment is 17%. Assume that uncovered interest parity exists. From the above information you are required to: Calculate the Net Present Value (NPV) of each project in USD using the home currency approach. Based on the NPV, which project/s should Hibiscus Berhad invest in? Explain. (Total: 10 Marks)