A U.S. multinational corporation (MNC) is considering an investment in Australia. The incremental after-tax cash flows from the project are expected to be 100, 200 and 300 millinon Australian dollars (AUS) in years 1, 2, and 3. It costs 400 Australian dollars to build the project in year 0. The MNC's cost of equity is 11%. The project is 100% equity financed. The current exchange rate is 0.74 USD/AUS in year 0, however, the Austrialian dollar is expected to depreciate by about 3% a year against the US dollar during the life of the project. Should the MNC proceed with this project? Why?