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The South Korean multinational manufacturing firm, Nam Sung Industries, Is debsting whether to Invest in a 2year project in the United states. The project's expected

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The South Korean multinational manufacturing firm, Nam Sung Industries, Is debsting whether to Invest in a 2year project in the United states. The project's expected doliar eash fows consist of an initial investment of $1 million with cash inflows of $700,000 in Year 1 and $600,000 in Year 2. The risk-adjusted cost of eapital for this project is 11%. The current exchange rate is 1,066 won per U.S. dollar. Risk-free interest rates in the United States and 5 . Korea are: a. If this project were instead undertaken by a similar U.S,-based company with the same risk-adjusted cost of capital, what would be the net present value generated by this prolect? Do not round intermediate calculations. Round your answer to the nearest doliar. 3 What would be the rate of retum generated by this project? Do not round intermediate calculations. Round your answer to two decimal places. b. What is the expected forward exchange rate 1 year from now? (Hint: Take the perspective of the Korean company when identifying home and forkign currench and direct auotes of exchange rates.) Do not round intermediate calculations. Round your answer to two decimal places. won per U.S. dollar What is the expected fonward exchange rate 2 years from now? (hint: Take the perspective of the Korean company when identifying home and foreign currenc and direct quotes of exchange rates.) Do not round intermediate calculations. Round your answer to two decimal places. won per U.S. dollar c. If Nam Sung undertakes the project, what is the net present value and rate of retum of the project for Nam Sung? Do not round intermediate calculations. tint your answer for the net present value in mallons. For example, an answer of 1.23 million won should be entered as 1.23 , not 1,230,000, llound your andwers t two decimal places NPY: million won Raste of return

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