6. (a) Wolverine Corp. currently has no existing business in New Zealand but is considering establishing a subsidiary there. The following information has been gathered to assess this project: Year 0 1 2 3 4 5 Subsidiary CF NZ$300,000 NZ$200,000 NZ$225,000 NZ$250,000 NZ$275,000 NZ$300,000 Exchange $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 The initial investment required is 300,000 in New Zealand dollars (NZ$). The New Zealand subsidiary will pay interest only on loan each year, at an interest rate of 14 percent. The project has been terminated at the end of Year 5, when the subsidiary would be sold. Determine the Net Present Value (NPV) and explain whether the Wolverine Corp. should accept or not for this project. (b) Wolverine Corp. is using centralized management to optimize the cash flow as well as the subsidiaries. In order to optimize the cash flow, netting systems are used to reduce currency conversion cost. Describe about netting systems