Delta Company, a U.S. MNC, is contemplating making a foreign capital expenditure in South Africa. The initial cost of the pr ZAR12,600. The annual cash flows over the five-year economic life of the project in ZAR are estimated to be 3,780, 4,780, 5 and 7,650. The parent firm's cost of capital in dollars is 9.5 percent. Long-run inflation is forecasted to be 3 percent per ann United States and 7 percent in South Africa. The current spot foreign exchange rate is ZAR per USD = 3.75. Required: Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D

A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million per year for 20 years. Plan B requires a $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.69 million per year for 20 years. The firm's WACC is 10%. Calculate each project's NPV. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. Plan A: $.    million Plan B: $     million Calculate each project's IRR. Round your answers to one decimal place. Plan A:     % Plan B:     % By graphing the NPV profiles for Plan A and Plan B, determine the crossover rate. Round your answer to one decimal place.           % Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one…

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a) watax inc a mining outfit in phoenix intends to engage in mining operations in southern Africa after conducting comprehensive feasibility of the referenced country. Assume that the prevailing interest rate in South Africa is 9 percent. To meet its working capital needs, watax will borrow south African rands, convert them to us dollars, and repay the loan in one year. What will watax effective financing rate if the rand depreciates by 6 perfect or appreciates by 3 percent. Discuss your result. b) given the information and assuming a 50 % probability that either scenario would occur, determinate the expected value of the effective financing rate. c) Assume that the one tear prevailing interest in mexico is 5 percent while that in the US is 8%. What percentage change in the peso would cause a US firm borrowing peso to incur the same effective financing rate as it would it borrowed dollars. Discuss the result

CIP Co, a telecommunications company, is considering an investment of $150 million into a wind farm. The wind farm is expected to generate after-tax cash flows of $75 million in Year 1, $120 million in Year 2, and $175 million in Year 3. CIP Co’s WACC is 12% but some members of management believe the project should be assessed using a discount rate of 15% (which is what Major Bank Ltd advises is a typical discount rate for a wind farm project). The company has spent $15 million up to today researching this opportunity. What is NPV?

Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$10,000,000 (Singapore dollars). The required rate of return is expected to be 15.00% for all four years of the project. _____________________________ Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flows to Parent, excluding Salvage Value   $2,500,000 $2,500,000 $3,400,000 $3,800,000 Initial Investment $10,000,000           Which of the following most closely approximates the break-even salvage value? $2,938,788   $2,671,625   $2,137,300   $2,404,463

A project costs Can$700,000 and has expected annual cash inflows of Can$300,000 for Years 1 through 3. The Canadian discount rate is 10 percent. The current spot rate is: $1 = Can$1.07. What is the NPV of this project in U.S. dollars using the foreign currency approach?

Cullumber Inc. is planning to expand operations into South America in 8 years. The first three years, Cullumber will spend on feasibility and marketing studies. Once those studies are complete, Cullumber plans to invest $198000 per year for the remaining five years. What amount will Cullumber have at the end of the eight-year period for the expansion assuming a 11% interest rate? ○ $1431104 $990000 ○ $2348167 ○ $1233104

A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $6.55 million per year for 20 years. Plan B requires a $13 million Initial outlay to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.91 million per year for 20 years. The firm's WACC is 10%. a. Calculate each project's NPV. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. Plan A: Plan B: $ $ million million Calculate each project's IRR. Round your answers to one decimal place. Plan A: Plan B: % % b. By graphing the NPV profiles for Plan A and Plan B, determine the crossover rate. Approximate your answer to the nearest whole number. % c. Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to one…