10. After a us firm has made an investment in India, the Indian government gets rid of remittance taxes on foreign investments. Which of the following correctly describes the effect on the projects NPV and IRR in USD? a. NPV would be lower, IRR would be lower bNPV would be higher, IR would be lower NPV would be lower, IRR would be higher NPV would be higher, IRR would be higher None of the above c. d. e. 11. A US firm has a subsidiary in China. US retained earnings are $500 million. The retained earnings of the China subsidiary are CNY 1 billion. The spot exchange rate is 6.7 CNY/USD. What are the corporation's combined earnings in CNY? a. 649 million b. 955 million c. 1.55 billion d. 2.55 billion e. 4.35 billion 12. A French firm has 500 million worth of debt denominated in Euros. The yield to maturity on the debt is 6% and the corporate tax rate is 40%. The firm also has SS00 million of USD denominated debt, with a YTM of 5% and a corporate tax rate of 25%, what is the combined after-tax cost of debt if the exchange rate is 1.13 USD/EUR? 1.91% a. b. 2.58% 3.67% . d. 4.12% None of the above e