You are CEO of Acme, Inc. located in the US. You use the discounted payback period method and accept all projects that payback in 3 yrs. You are considering a project that will cost $5,500,000 and will produce 1 cash flow that occurs in 3 years. However, the cash flow is in pesos since the project is an overseas project. The current indirect exchange rate is 13.5 pesos per dollar. The cash inflow in pesos is 100,000,000 in 3 years, and the discount rate is 11.5%. During this time, the anticipated annual inflation rate is 5% in the United States and 4% in Mexico. Need 6 steps to solve, accept?

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