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Use the data on the picture. Answer Required A , B , C , and D Required A: Calculating the NPV in ZAR using the
Use the data on the picture. Answer Required A B C and D Required A: Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at the current spot rate.
Note: Do not round the intermediate calculations. Round the final answer to the nearest whole number. Required B: Converting all cash flows from ZAR to USD at purchasing power parity forecasted exchange rates and then calculating the NPV at the dollar cost of capital. Required C: Are the two USD NPVs different or the same? Required D: What is the NPV in dollars if the actual pattern of ZARUSD exchange rates is: S S S S S and S
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