An American firm starts a proiect in France that yields a series of Euro cash flows as

The exchange rate of the Euro today is $$1\mathrm{.}25$ per Euro. The inflation rate in the euro zone is $=3=3\%,$ the inilation rate in dollars is $ps=6\%.$

Please solve for the exchange rates of the Euro in year $1,2$ and $3(3$ points$).$

Please solve for the project's NPV$,$ assuming the cost of capital as $10\%(3$ points$).$

Please solve the project IRR in Euros $(2$ points$)$

Solve for the equivalent USD IRR. Assume that intemational fisher efiect and purchasing power parity holds. $(4$ poimts$)$