$(20$ points$)$ A company requires a $26\%$ internal rate of return $($before taxes$)$ in U$.$S$.$

dollars on project investments in foreign countries.

a$.(10$ points$)$ If the currency of Country A is projected to average an $8\%$ annual

devaluation relative to the dollar, what rate of return $($in terms of the currency there$)$

would be required for a project?

b$.(10$ points$)$ If the dollar is projected to devaluate $6\%$ annually relative to the currency

of Country B$,$ what rate of return $($in terms of the currency there$)$ would be required

for a project?