Question: i'm having trouble calculating part a I've ran the numbers twice and got the same answer. I really need help. Delta Company, a U.S. MNC,
Delta Company, a U.S. MNC, is contemplating making a foreign capital expenditure in South Africa. The initial cost of the project is ZAR11,600. The annual cash flows over the five-year economic life of the project in ZAR are estimated to be 3,480,4,480,5,470,6,460, and 7.400. The parent firm's cost of capital in dollars is 9.5 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 =3.75. Required: Complete this question by entering your answers in the tabs below. 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 answer to the nearest whole number. a. Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher effect and then converting to USD at
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