Please this is an actual testt. I need the answer within an hour. Please do not take it if you cannot do it within an hour. 2 problem question. Please type the answer in word at attach please. Also attach the spreadsheet of question 3Thanks

3.Alpine Inc. is contemplating on investing in a manufacturing facility in China. As a consultant, you are charged with doing the financial analysis for this project. You expect the cash flows (in Chinese RMB) for this project to last indefinitely. You estimated the following cash flows for 2017-2022 and that the cash flows will grow at a constant rate starting 2023. (12 points) - Please type your answers here and attach your spreadsheet on the next page.

Year

FCF

Other Data

2017

-80,000,000 RMB

Growth rate of RMB FCF starting 2023 = 3%

2018

9,000,000 RMB

Cost of Capital for similar U.S. Projects (WACC) = 15%

2019

10,000,000 RMB

Inflation in the U.S. = 2%

2020

2021

2022

12,000,000 RMB

16,000,000 RMB

20,000,000 RMB

Inflation in China = 6%

Spot rate = 6.5 RMB/USD

a)What is the appropriate discount rate you should use to discount the RMB cash flows?

b)What is the RMB NPV and IRR for this project? (If Excel is used, please cut and paste it here, showing all the cash flows and answers to this question.)

c)What is the USD NPV for this project? (Please show your calculation converting RMB NPV to USD NPV.)

d)What are the i) RMB cost of capital and ii) RMB NPV if inflation in China rises to 7% and the U.S. inflation drops to 1%?

Please attach your spreadsheet here.

4) The Jupiter Corporation is acquiring the SumotoCorporation.Neither firm has any debt outstanding. Jupiter has 200 million shares of stock outstanding with a market price of $16 per share. Sumotohas 80 million shares of stock outstanding with a market price of $6 per share.Jupiter'sadvisors estimate the benefits of synergy to have a present value of $100 million.

a.What is the estimated market value of the combined companies? (2 points)

b.Suppose Jupiter pays $550 million in cash to buy 100 percent of the common stock of Sumoto.What is the NPV of the merger?(5 points)

c.If Jupiter offers 1 share of Jupiter's stock for every 2 shares of Sumoto'sstock, what is the NPV of the merger? (5 points)