AUS based MNC, Genultow Lta. is consideringestabilshing a three year project in Cantada witha US\$70 million Itiliei irvestment. The firmis cast of capital is 10%. The required rate of return on this project is 13%. The firm is projected to generate cash flows of C.\$8 million in Yearn 1 and 2 and C\$58 malion in Year 3 , and is expected to have a ralvage valoe of CS30milion. MNC must pay a 1C\%, tax on reinitted funds, atwt the stable exchange rate is C\$1.27 per US\$ (i. . US\$1 = $C1.27) over the next two years and a rate of C\$1.31 per US\$: CLeUS\$ =C$1.31 in year 3 . Al cash fiows are remitted to the parertat the end of each year. Requtred: 1) What is the amount of US doliars that will be renitted to the parent company each year? Hint: use the after tax cash floves. Licalculate the Net fresent Vale of the project. (Hint- find NPV of the affer tax cash flows. (18 marics) iin) Explais whether or riot the MNC should accept the project? (3 marics) (v). Genuflow Ltd. conducted its capl tal budgeting analysis in July. Howevef, in December the management expects the leadersip of the gowermanent to stabilize and improvements in the political conditions in Canach. How should the discount rate and the feasibalty of the project be affected by the improvements in the country's politicat conditions