Question: Q-1 Costa Coffee opened its first store in Cape Town in South Africa in August 2017. The price of a large Cappuccino cup in Cape

Q-1 Costa Coffee opened its first store in Cape Town in South Africa in August 2017. The price of a large Cappuccino cup in Cape Town is 12.85 rand. In Washington City, the price of a large Cappuccino cup is $1.325. The exchange rate between South Africa rand (Rn) and U.S. dollars is Rn5.6288/S. According to purchasing power parity, is the South Africa rand overvalued or undervalued

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