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this is as clear as chegg will let me, can i clear anything up Homework: Chapter 18 Homework Question 7, P18-20 (similar to) Part 2

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this is as clear as chegg will let me, can i clear anything up
Homework: Chapter 18 Homework Question 7, P18-20 (similar to) Part 2 of 18 HW S OF Domestic NPV approach. Farbucks is thinking of expanding to South Korea. The current indirect rate for dollars and South Korean won is 1,000 won per dollar. The expected inflation rate in South Korea shoul 3.8%. The discount rate for expanding is 12% for Farbucks. Given the following projected cash flows for the expansion project, use the domestic NPV approach to determine whether Farbucks should expand to Year 0: initial investment costs of 90,000,000 won per coffee shop Year 1 cash flow: 15,000,000 won Year 2 cash flow: Year 3 cash flow: 30,000,000 won 65,000,000 won Year 4 cash flow: 85,000,000 won Year 5 cash flow: 40,000,000 won CLEOD + Domestic currency approach in multinational capital budgeting consists of the following steps: Step 1: Calculate the forward exchange rates. Step 2: Convert all cash flows in foreign currency into dollars using current and forward exchange rates. Step 3: Convert all future dollars into present value with the domestic discount rate. Step 4: Add the net present value of the outflow and inflow Step 5: Accept the project if its not present value (NPV) is positive and reject if negative. First, complete step 1 by calculating the forward rates. The current indirect exchange rate is 1,006 for dollars and South Korean won. The inflation rate in South Korea is expected to hover near 1,4% for the next five years and the U.S. inflation rate is expected to stay won per $ (Round to four decimal places.) Question 7, P18-20 (similar to) Part 2 of 18 HW Score: 75.71%, 5.3 of 7 points O Points: 0 of 1 Save ct rate for dollars and South Korean won is 1,006 won per dollar. The expected inflation rate in South Korea should hover near 1.4% for the next five years. The expected U.S. inflation rate should stay around Bows for the expansion project, use the domestic NPV approach to determine whether Farbucks should expand to South Korea Com rates m South Korea is expected to hover near 1.4% for the next five years and the U.S. inflation rate is expected to stay around 3.8%. What is the 1-year forward indirect rate for dollars and South Korean won

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