A direct foreign investment is a company domiciled in Kenya. It operates subsidiaries in several other African countries.  The cash flow  shown were forecasted at the beginning of 2021.

	Average Exchange Rate	Annual  change of Exchange Rate  %	Annual growth in cashflow              %	Cashflows in Billions 2021
Rwanda	14	5	10	56
Uganda	17	5	8	170
Tanzania	26	(3)	6	260
Ethiopia	11	(2)	12	55
Kenya	-		5	200

Calculate (a) it's annual cash flows in Kshs  for the next 5 years (b) the value of the investment. Assuming cost of capital as 10% throughout the period of 5 years.

Answer rating: 100% (QA)

To calculate the annual cash flows in Kshs for the next 5 years we need to first convert the cash flows in billions to millions by multiplying by 1000 ... View the full answer