$4)$ NMC $($a U$.$S$.$ firm$)$ is considering investing Rs$50,000,000$ in India to create a wholly owned tile manufacturing plant to export to the European market. After five years the subsidiary would be sold to Indian investors for Rs$100,000,000.$ Sales revenue is projected to be Rs$30,000,000$ per year, operating expenses are projected to be Rs$17,000,000$ per year, and depreciation expenses Rs$1,000,000$ per year.

The initial investment will be made on December $31,2011,$ and cash flows will occur on December $31$st of each succeeding year. Annual cash dividends to NMC from India will equal $75\%$ of accounting income.

The U$.$S$.$ corporate tax rate is $40\%$ and the Indian corporate tax rate is $50\%.$ Because the Indian tax rate is greater than the U$.$S$.$ tax rate, annual dividends paid to NMC will not be subject to additional taxes in the United States. There are no capital gains taxes on the final sale. NMC uses a weighted average cost of capital of $14\%$ on domestic investments but will add $6$ percentage points for the Indian investment because of perceived greater risk. NMC forecasts the rupee$/$dollar exchange rate for December $31$st on the next six years are listed below.

Expected exchange rates $($in Rs$/$$$)$ for December $31$st on the next six years $(20112016)$ are $50\mathrm{.}00,54\mathrm{.}00,58\mathrm{.}00,62\mathrm{.}00,66\mathrm{.}00,$ and $70\mathrm{.}00.$ What is the net present value and internal rate of return on this investment?