1). An MNC is considering establishing a two-year project in New Zealand with a $60 million initial investment. The firm's cost of capital is 12%. The required rate of return on this project is 18%. The project is expected to generate cash flows of NZ$12 million in Year 1 and NZ\$30 million in Year 2, excluding the salvage value. Assume no taxes, and a stable exchange rate of $.60 per NZ\$ over the next two years. All cash flows are remitted to the parent. What is the break-even salvage value? a. about NZ$11 million. b. about NZ$15 million. c. about NZ31 million. d. about NZ\$37 million. e. about NZ$95 million