Page 45 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 45 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629Answer with method 2:First, we will estimate the foreign currency discount rate. Second, we will calculate the foreign currency NPV using the foreign cost of capital. Finally, we will exchange the foreign currency NPV into dollars using the spot exchange rate.Since the US inflation rate is 3% lower than the Egyptian inflation rate, our Egyptian-denominated discount rate should be higher than our dollardenominated discount rate.- Finding the Foreign Currency Cost of Capital: iEGPI = EGP(1+i$) %u00d7 (1+%uf070EGP )%u2013 1(1+%uf070$ )(1.15) %u00d7 (1.20)i = %u2013 1 = 0.34 = 34%%u20ac (1.03)EGP %u201345,0000EGP20,0001EGP50,0002EGP30,0003NPV = %u2013 EGP45,000 +EGP20,000+1.34EGP50,0002(1.34)EGP30,000+3(1.34)= EGP10,240NPV in $ = EGP10,240 X 0.021 EGP/$ = 215$