You work for a firm whose home currency is the South Korean Won (KRW) and that is considering a foreign investment based in Spain. The investment yields expected after-tax Euro (EUR) cash inflows (in millions) as follows: EUR259 in Year 1, EUR180 in Year 2, EUR429 in Year 3 and EUR218 in Year 4. The initial capital outlay for the project has been identified as a total of EUR372 million. From the project's perspective the required return is 15.36% p.a, while from the parent's perspective, the required rate of return is 10.41% p.a. The real interest rate in South Korea is 4.67% and international parity conditions hold for all time periods. The spot exchange rate is EURO.00075/KRW. How larger is the NPV when evaluated from the parent's perspective relative to the NPV from the project's perspective? a. KRW0.000 million O b. KRW520,410.389 million Oc. KRW0.293 million Od. -KRW496,000.00 million Oe. There is not enough information to answer this question Of. None of the options in this question are correct D

You work for a fitm whose home curtency ia the South Korean Won (KRW) and that is considering a foreign investment based in Spain. The investrnent yields expected after-tax Euro (EUR) cash inflows (in milions) as fotlows: EUP259 in Year 1, EUR180 in Year 2, EUR429 in Year 3 and EUR218 in Yeor 4. The initial capital outiay for the project has been identified as a fotal of EUR372 million. From the project p perspective the required return is 15.36% g at whice from the parenfe perspectime; the tequired rate of refum is 10.411p a. The real interest tale in South Korea is 4.677 and international parity condnions hold for all time penods the spot oxchango rote is EUra 00075k W. How largef is the NPV when evaluated trom the parents perspecthe redative to the NPV from the projects perspective? a. KPWO, 000 million b. KRW 520,410389 milion c KRWVo.293 million. d KFWr496.000.00 million e: There is not enough information fo answer this question. None of the options in this quedtion are correct