Find the npv in foreign currency

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A South African company is considering a project in the US. The project will cost $150M. The cash flows are expected to be $40M per year for 5 years. The current spot exchange rate is 15 South African Rand (ZAR)per dollar. The risk-free rate in the US is 1%, and the risk-free rate in South Africa is 5%. The South African required return on the project is 14%. Find the NPV in foreign currency using the foreign currency approach

Reference no: EM133114498

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