Given the correct answers so far, please find the rest of question A and B .

Problem 18-1 (algorithmic) Question Help Carambola de Honduras. Slinger Wayne, a US-based private equity firm, is trying to determine what it should pay for a tool manufacturing firm in Honduras named Carambola Slingor Wayne estimates that Carambola will generate a free cash fow of 14 million Honduran lompiras (Lp) next year, and that this free cash flow will continue to grow at a constant rate of 75% per annum indefinitely A private equity firm like Slinger Wayne, however, is not interested in owning a company for long, and plans to sell Carambola at the end of three years for approximately 10 times Carambola's free cash flow in that year. The current spot exchange rate is Lp14.0009S, but the Honduran inflation rate is expected to remain at arelatively high rate of 160% per annum compared to the U S dollar inflation rate of only 35% per annum Singer Wayne expects to earn at least a 21 5% annual rate of return on international investments like Carambola a. What is Carambola worth if the Honduran lempira were to remain foed over the three-year investment period? b. What is Carambola worth i the Honduran lempira were to change in value over time according to purchasing power parity? a. Calculate the free cash flows in Honduran lempiras (Lp) below (Round to the nearest whole number) Year 0 Year 1 Year 2 Year 3 Lp 14,000,000 Lp 15050,000 Lp 16,178,750 Carambola's expected free cash flow Expected sale value in year 3 Total expected cash flow Lp 161,787.500 Lp 14,000,000 Lp 16,050,000 Lp 177,966250 Expected exchange rate (Lp/5) 14.0009 Enter your answer in the answer box and then click Check Answer ndows parts remaining Clear All Check Arr Carambola de Honduras. Slinger Wayne, a U.S based private equity 8irm, is trying to determine what it should pay for a tool manufacturing 5irm in Honduras named Carambola Slinger Wayne estirnates that will continue to grow at a constant rate of 7 5% per annum indefinitely A private equity firm like Slinger Way approximately 10 times Carambola's free cash flow in that spot exchange a relatively high rate of 16 0% per annum compared to the U S dollar inflation rate rate of return on international investments like Carambola Carambola will generate a free cash flow of 14 milion Honduran lempiras (Lp) next year, and that this free cash flow will yne, however, is not interested in owning a company for long, and plans to sell Carambola at the end of three years for year The current spot exchange rate is Lp14.0009/5, but the Honduran inflation rate is expected to remain at of only 3 5% per annum Singer Wayne expects to earn at least a 21.5% annual is Carambola worth if the Honduran lempira were to remain fixed over the three-year investment b. What is Carambola worth if the Honduran lempira were to change in value over time Year 0 Year 1 Year 2 Year 3 Carambola's expected free cash flow Expected sale value in year 3 Total expected cash flow Expected exchange rate (Lp/S) 14.0009 14 0009 14.0009 14 0009 Carambola's expected cash flow in USS $ 999.936 1,074 931 $ 12,711,058 Enter your answer in the answer box and then click Check Answer parts remaining nddows r All Check Amver Problem 18-1 (algorithmic) Question Help Carambola de Honduras. Singer Wayne, a U.S-based private equity firm, is trying to determine what it should pay for a tool manufacturing firm in Honduras named Carambola Slinger Wayne estimates that Carambola will generate a free cash flow of 14 million Honduran lempiras (Lp) next year, and that this free cash flow will continue to grow at a constant rate of 7 5% per annum indefinitely A private equity firm like Slinger Wayne, however, is not interested in owning a company for long, and plans to sell Carambola at the end of three years for approximately 10 times Carambola's free cash flow in that year. The current spot exchange rate is Lp14.0009/S, but the Honduran inflation rate is expected to remain at a relatively high rate of 16 0% per annum compared to the U S dollar inflation rate of only 3.5% per annum Singer Wayne expects to earn at least a 215% annual rate of return on international investments like Carambola a. What is Carambola worth if the Honduran lempira were to remain fixed over the three-year investment period? b. What Is Carambola worth if the Honduran lempira were to change in value over time according to purchasing power parity? Expected sale value in year 3 Total expected cash flow Expected exchange rate (Lp'S) 14.0009 14.0009 14.0009 14.0009 Carambola's expected cash flow in USS S 999 936 1074,931 s 12,711,058 lf Singer Wayne expects to earn at least a 21 5% annual rate of return on international investments, the value of Carambola today is S dollar) (Round to the nearest Enter your answer in the answer box and then click Check Answer parts Char All Check Anower