Delta Company, a U$.$S$.$ MNC$,$ Is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR$11,400.$ The annual cash flows over the five$-$year economic life of the project in ZAR are estimated to be $3,420,4,420,5,410,6,400,$ and $7,350.$ The parent firm's cost of capital in dellars is $9\mathrm{.}5$ percent. Long$-$run inflation is forecasted to be $3$ percent per annum in the United States and $7$ percent in South Africa. The current spot foreign exchange rate Is ZAR per USD $=3\mathrm{.}75.$

Requlred:

Complete this question by entering your answers in the tabs below.

Required B Required C

Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at the current spot rate.

Note: Do not round the intermediate calculations. Round the final ansyrer to the nearest whole number.

NPV in USD using fisher effect