7.(20 points) Duff Industries has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 500,000 Australian dollars (AS) at end of the first year and 1,000,000 Australian dollars at the end of the second. Duff Industries would have to invest USD 600,000 in the project now. Duff Industries has determined that the cost of capital for similar projects is 15%. The current spot rate of the Australian dollar (AS) is $0.50. (5 points) Duff Industries forecasts that the Australian dollar will remain unchanged. What is the net present value of this project in USD under this scenario? a. (5 points) Duff Industries forecasts that the Australian dollar will appreciate l 190 for each of the next two years. What is the net present value of this project in USD under this scenario? b. (5 points) Duff two years. What i Industries forecasts that the Australian dollar will depreciate 13% for each of the next s the net present value of this project in USD under this scenario? (5 points) There is a 50% chance the Australian dollar will remain unchanged. There is a 25% chance the Australian dollar will appreciate 9% each of the next two years. There is a 25% chance the Australian dollar will depreciate 13% each of the next two years. Should the Duff Industries approve this project? Why or why not? d