Question. The new management is also considering an entirely new investment project, which involves building a new factory in South Korea. The Korean subsidiary will require an initial investment of 157,474m South Korean Won (KRW). Jasmine can borrow money to finance this investment in the UK market, in France, or in South Korea. Table 5 below offers information about the borrowing costs in different currencies and an estimation of the future value of foreign exchange. Discuss the foreign exchange risk associated with this expansion plan and advise which is the best way to finance the Korean factory.

Initial investment (KRW) 157,474

Interest rate in UK (5-year loan) 0.06

Interest rate in South Korea (5-year loan) 0.14

Interest rate in France (5-year loan) 0.08

Spot exchange rate: KRW per GBP 1,574.74

Expected appreciation of GBP in relation to KRW 4% per annum

Forecasted exchange rate: EUR per GBP 1.16

Expected appreciation of GBP in relation to EUR 2% per annum

Can someone show the calculation for table columns. please

calculation for GBP year 1-5

GBP to KRW KRW cost year 1 to 5