A Swiss is considering undertaking 8 years project in the United States. The project's expected dollar denominated cash flows consist of an initial investment of $500,000 and a cash inflow the following year of $50,000 and will grow at a rate of 6% every year till 5 years. Swiss firm estimates the risk adjusted cost of capital is 14%. Currently one U.S dollar will buy 1.52 Swiss francs. The expected forward exchange rate one year from now and till 5 years is 1.87 SF per U.S. $. The U.S government blocks 20% of Swiss' firm's cash flow in second and third year only. a) What would be the NPV and rate of return (IRR) generated by this project in US $? b) If Swiss firm undertakes the project, what is the NPV and rate of return (IRR) of the project in Swiss Francs?