An American firm has the opportunity to acquire a target company in Mexico. The firm anticipates owning the subsidiary for 5 years. Is this a profitable investment, and if so, what is the projected NPV? Initial Outlay = 200,000,000 pesos Cash Flow (DF): 50,000,000 pesos at the end of Year 1, with Cash Flows increasing 12% each year Required Rate of Return (k) = 20% Salvage Value (SV) = 75,000,000 pesos Time at which target will be sold (n) = 5 In this case, assume that exchange rates will remain the same from 10 until the target is sold. Yes. The NPV of the target takeover is 12,487,320 pesos. No The NPV is - 17,653,598 pesos. Yes. The NPV of the target takeover is 192,642,368 pesos. Yes. The NPV is 125,000,000 pesos