Assume that you have an opportunity to invest in an expansion project in Peru in 2016. The project's cash flows (in Peruvian Sol, PEN) for 2016-2020 are shown below and the cash flows will grow at a constant rate forever. You gathered the following data: 2016Year2017201820192020FCF3,550,000PEN600,000PEN800,000PEN900,000PEN900PENOtherDataGrowthrateofPENFCFbeyond2020=3%CostofCapitalforsimilarU.S.Projects(WACC)=10%InflationintheU.S.=2%InflationinPeru=6%Spotrate=3.5PEN/USD a) What is the appropriate discount rate you should use to discount the PEN cash flows? b) What is the PEN NPV and IRR for this project? c) What is the USD NPV for this project? d) What is the PEN NPV if the inflation in Peru rises to 8% while the U.S. inflation stays at 2%