Cyber tech Bhd is a Malaysian firm and planning to construct a manufacturing plant in Thailand....

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Cyber tech Bhd is a Malaysian firm and planning to construct a manufacturing plant in Thailand. The construction cost would be 15 million Thai baht (THB). Cyber tech Bhd intends to leave the plant open for three years. During the three years of operation, the cash flows that will be generated from the plant are expected to be 4 million Thai baht and 5 million Thai baht for the first and second year, respectively. In Year 3, the expected cash flow is 3 million Thai baht. At the end of the third year, Cyber tech Bhd expects to sell the plant for 4 million Thai baht. The company has a required rate of return of 8 percent. Assume that currently it takes 7.5 Thai baht to buy one Malaysian Ringgit, and the Thai baht is expected to depreciate by 5 percent per year. i) Determine whether Cyber tech Bhd should accept or reject the project. Support your answer by calculating the Net Present Value (NPV). (10 marks) Cyber tech Bhd is a Malaysian firm and planning to construct a manufacturing plant in Thailand. The construction cost would be 15 million Thai baht (THB). Cyber tech Bhd intends to leave the plant open for three years. During the three years of operation, the cash flows that will be generated from the plant are expected to be 4 million Thai baht and 5 million Thai baht for the first and second year, respectively. In Year 3, the expected cash flow is 3 million Thai baht. At the end of the third year, Cyber tech Bhd expects to sell the plant for 4 million Thai baht. The company has a required rate of return of 8 percent. Assume that currently it takes 7.5 Thai baht to buy one Malaysian Ringgit, and the Thai baht is expected to depreciate by 5 percent per year. i) Determine whether Cyber tech Bhd should accept or reject the project. Support your answer by calculating the Net Present Value (NPV). (10 marks)

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