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This information applies to the next two questions Due to the recent uncertainty of the exchange rate, Malaysian government decided to use a fixed exchange rate of $1= MYR 4.45 or $0.2247 per MYR for the foreseeable future. This fixed rate DOES NOT apply to the initial investment as it was only put in place after that. In other words, it was put in place after Hi-Rider's initial investment into Malaysia. Complete the rest of the table below and then answer the question 30 below. Please note your information from rows 1 through 17 is the same as before. You must submit this table with your answer. 18. 0.2247 0.2247 0.2247 19. Exchange rate Cash flows to parent = [(16) + (17)] (18) PV of parent cash flows (10 discount rate) Initial Investment by parent (convert to $) - 10M x 0.25 20. 21. 22. Cumulative NPV 30. What is the NPV of the project if we use this fixed exchange rate? Pick the closest answer. a. about $5,187,828.70 b. about $5,758,717.72 c. about $6,819,124.40 d. about $7,768,407.21 Do not undertake the project since NPV is negative e. 31. Malaysian economy has going through some turmoil and hence Hi-Rider's financial managers decided to increase the required rate of return from 10% to 16% to account for this increased risk. Assuming the exchange rate changes from the previous question still applies, what is the new NPV with this change? In other words, use information from Question 30 table. Hint: This is an easy question so please don't over think this one. Pick the closest answer. about $5,187,828.70 b. about $5,758,717.72 c. about $6,819,124.40 d. about S7,768,407.21 Do not undertake the project since NPV is negative a. e

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