55.

D) 73.50% E) 79.98% Please use the following information to answer the following six questions. n is to solve the whole process as much as you can, and solve again a second time separately to double check, before finally bubbling in your answers. Feel free to ask me for clarification if you need: Kleinberger Development Corp, a US based firm that specializes in building and leasing office towers, is evaluating b ing an office tower in Sao Paolo, Brazil. After building and leasing the property, however, Kleinberger int p the property for 4 years until selling it. uild ends only to kee Given Sao Paolo office cap rates, Kleinberger expects to sell at a 20 times free cash flow multiple (that is, a multiple of ye ar 4 free cash flow). Free cash flow for year 1 is expected to be 700,000 Brazilian Real, and FCF is expected to grow thereafter at 5% per year. The current exchange rate is 5.4 Brazilian Real to the US Dollar. The project discount rate for something of this risk is 10%. Inflation in Brazil is expected to be 8% each year over the next four years, and 2% in the United States. Assuming exchange rates stay fixed for all four years, what's the terminal value in USD? A) 16206750.0 B) 810337.5 C) 1543500.0 D) 150062.5 E) 3001250.0