A project in France yields a series of Euro cash flows as the following:

Please solve for the project IRR in Euros (4 points)

-600 euro 200 euro 500 euro 300 euro

0 1 2 3

Solve for the equivalent USD IRR. The exchange rate of Euro today is $1.25 per Euro. The inflation rate in the euro zone is p = 3%, the inflation rate in dollars is p_$ = 6%. Assume that international fisher effect and purchasing power parity holds. (6 points)