A European MNC desires to establish a 2-year project in Abu Dhabi with an 8 million euros initial investment. The firm's cost of capital is 9%. The required rate of return on this project is 10%. The project is expected to generate cash flows of AED 2 million, and AED 4 million for year 1 and year 2 respectively. Assume no taxes, and an exchange rate of 0.25 euro per AED for the first year. In year 2, the AED is expected to depreciate 10% against the euro. The estimated salvage value is 8,500,000 euros. All cash flows are remitted to the parent company in Athens. Is the project accepted? No, because the NPV is - 6,545,454.55 No, because the NPV is - 6,636,363.64 Yes, because the project is expected to generate a positive return on investment of 7%, although the NPV is negative No, because the required rate of return is higher than the firm's cost of capital, and hence, the value of the project will be low. In this case is quite impossible for the firm to get a salvage value of 8,500,000 euros after two years Yes, becuae the project is expected to generate a positive return on investment of 15%, although the NPV is - 6,545,454.55 Yes, because the project is expected to generate a positive return on investment of 5%, although the NPV is negative