Question: Question 18 -- / 5 Howard plc based in the UK is evaluating its foreign direct investment project in Singapore. The project has a salvage

Question 18 -- / 5 Howard plc based in the UK is evaluating its foreign direct investment project in Singapore. The project has a salvage value of S$8 million in nominal terms at the end of seven years. The current spot exchange rate is S$1.75 per pound sterling and the Singapore dollar is expected to appreciate against sterling by 4% per year. The UK company uses a discount rate of 9% to evaluate foreign direct investment. Which is the sterling present value of the salvage value

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