AnAmerican firm isanalyzing a potential 3-year investment in France. It will require an investment of 2000 and is forecastedto yield cash flows of 2000 for the next 3 years. The spot is 1.2/$. The U.S inflation rate is 7%, the euro inflation rate is 10%. The American firm estimated WACCis 80% and the euroIRR is 83.93%. Should we invest in this project?

a.Yes

b.No

c.The investor should be indifferent

d.It is impossible to determine