20 Points 1. Calculate the net present value, profitability ratio, and discounted payback period of a project in the Phillipines using the domestic currency approach. The indirect rate between the dollar and the Phillipine peso is 50. The domestic discount rate is 6%, Phillipine inflation is 5%, and U.S. inflation is 2%. 2. Calculate the net present value two different ways as well as the profitability ratio of the same project using the foreign currency approach. 3. Suppose you first buy $200 worth of Phillipine pesos on your vacation to the Phillipines, then go to France and use the pesos to buy euros, and finally buy dollars with the euros when you return home. The indirect exchange rate between the dollar and the Phillipine peso is 50 and the indirect exchange rate between the dollar and the Euro is 0.89. You can receive .025 euros for each peso at the going exchange rates. This is a 30 day vacation. Calculate the following: A. The amount of pesos you can buy with $200 B. The amount of euros you can buy with amount of pesos in Part A C. The amount of dollars you can buy with the euros from Part B D. Your holding period return from your gain or loss on your $200. Part 1 Year Cash Flow 0 -W7,500,000 1 $2,500,000.00 2 $1,500,000.00 3 $1,500,000.00 4 $3,500,000.00 5 $1,500,000.00 6 $4,500,000.00 Part 2 Year 0 Cash Flow -$7,500,000.00 1 $2,500,000.00 2 $1,500,000.00 3 $1,500,000.00 4 $3,500,000.00 5 $1,500,000.00 6 $4,500,000.00 1A. NPV: 1B. Profitability Ratio: 1C. Discounted Payback: 2A: NPV Peso: 2B. Profitability Ratio: 2C. NPV Dollars: Part 3 Show work here: 3A. Pesos 3C. Euros 3C. Dollars 3D. HPR: