Dhaka Ltd. just constructed a manufacturing plant in Ghana. The construction cost 4.50 million Ghanaian cedi. Brower intends to leave the plant open for three years. During the three years of operation, cedi cash flows are expected to be 1.50 million cedi, 1.50 million cedi and 1 million cedi, respectively. Operating cash-flows will begin one year from today and are remitted back to the parent at the end of each year. At the end of the third year, Brower expects to sell the plant for 2.50 million cedi. Brower has a required rate of return of 17 percent. It currently takes 4,350 cedi to buy one US dollar, and the cedi is expected to depreciate by 4.50% percent per year. Determine the NPV for this project. Should Dhaka Ltd. build the plant?
