Question: Slinger 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

 Slinger 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

Slinger 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 31,000,000 Hondurar lempiras (Lp) next year, and that this free cash flow will continue to grow at a constant rate of 3.00% 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 9 times Carambola's free cash flow in that year. The current spot exchange rate is Lp 15.2500/$, but the Honduran inflation rate is expected to remain at a relatively high rate of 12.00% per annum compared to the U.S. dollar inflation rate of only 2.00% per annum. Slinger Wayne expects to earn at least a 15% annual rate of return on international investments like Carambola. 1 pt: Question 53 Using data in Dataset #7 find what is Carambola worth if the Honduran Lempira were to remain fixed over the three-year investment period and Slinger Wayne will be able to sell the company as planed? (Do not round intermediate calculations, round your final answer to the nearest dollar) Question 54 1 Using data in Dataset #7, compute the exchange rate of Lp/$ in the next 3 years, it it changes according to the purchasing power parity. 16.7451: 18.8793; 21.2855 16.7451: 13.8884: 12.6484 13.8884: 12.6484:11.5191 15.2500: 14,8522, 14.4648 16.7451: 18.3868, 20.1894 Question 55 1 pts Using data in Dataset #7, find what is Carambola worth if the Honduran lempira were to change in value over time according to purchasing power parity. (Do not round intermediate calculations, round your final answer to the nearest dollar)

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