The South Korean multinational manufacturing firm Nam Sung Industries , is debating whether To invest in a 2 - year project in the United States . The project's expected dollar cash flows consist If an initial investment of $1 million with cash inflows of $700.090 in Year 1 and 5609.090 in Year 2 The risk - adjusted cost of capital for this project is 109. The current exchange rate is 07 4 won per US dollar Risk - free interest rates in the United States and S Korea are