Question: You are given the following data: Project life : 10 years Revenues : constant at MYR 10M Costs : 20% of revenues NWC : 10%

You are given the following data:

Project life: 10 years

Revenues: constant at MYR 10M

Costs: 20% of revenues

NWC: 10% of the revenues in the following year

Upfront investment at time 0: MYR 25M, depreciated straight-line to zero, salvage MYR 10M

taxes in Malaysia: 15%

WACC in USD 10%

Spot rate MYR 4.13/USD

inflation in USA 1.5%

inflation in Malaysia 2.5%

Question(s):

- Compute the spot rate next year, S1. ( 4 decimal places)

- Compute the spot rate in 5 years, S5. ( 4 decimal places)

- Compute the spot rate in 10 years, S10. ( 4 decimal places)

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