Calculate the ZAR equivalent cost of capital (k_ZAR) using the International Fisher Effect.

Here are the NPV calculations for the project in AED:

a) Calculating the NPV in ZAR using the ZAR equivalent cost of capital according to the Fisher Effect and then converting to AED at the current spot rate.

Step 1: Calculate the ZAR equivalent cost of capital ($k_{ZAR}$) using the International Fisher Effect.
The formula for the International Fisher Effect is:

$$(1 + k_{ZAR}) = (1 + k_{AED}) \times \frac{(1 + i_{ZAR})}{(1 + i_{AED})}$$

Given: $k_{AED} = 0.095$, $i_{ZAR} = 0.07$, $i_{AED} = 0.03$.

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