Delta Company, a U$.$S$.$ MNC$,$ is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR$10,800.$ The annual cash flows over the five$-$year economic life of the project in ZAR are estimated to be $3,240,4,240,5,230,6,220,$ and $7,200.$ The parent firm$$s cost of capital in dollars 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 $=3\mathrm{.}75.$

A$)$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.

b$)$Converting all cash flows from ZAR to USD at purchasing power parity forecasted exchange rates and then calculating the NPV at the dollar cost of capital.

D$)$What is the NPV in dollars if the actual pattern of ZAR per USD exchange rates is: S$(0)=3\mathrm{.}75,$ S$(1)=5\mathrm{.}7,$ S$(2)=6\mathrm{.}7,$ S$(3)=7\mathrm{.}2,$ S$(4)=7\mathrm{.}2,$ and S$(5)=7\mathrm{.}5?$