Assume that Ace Corporation is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5,000,000. If the project is undertaken, Ace would terminate the project after four years. Ace's cost of capital is 13%, and the project is of the same risk as its existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the project's lifetime in Norwegian kroner (NOK): The current exchange rate of the Norwegian kroner is $.135. Ace's' exchange rate forecast for the Norwegian kroner over the project's lifetime is listed below: a. What is the net present value of the Norwegian project? (7 marks) b. Assume that NOK8,000,000 of the cash flow in year 4 represents the salvage value. Ace is not completely certain that the salvage value will be this amount and wishes to determine the break-even salvage value. (8 marks)