c) Sky Plantations Tea Limited a Kenyan firm has identified a project in USA to add value to its produce before selling to into the USA market. The project is expected to cost $140 million with no residual value after economic life of 12 years. The project will require additional working capital of $40 million in the 3 [d year to be recovered in the 7th year. The project is expected to generate cash inflows of $20 million per year for first 5years, $16 million next 5 years and 10 million for the last two years. The spot rate is KES142/\$1, with inflation rate of 8.9% per year in Kenya, and the companies required rate of return 12%. There is no double taxation between Kenya and USA. You are required to examine the project NPV using: a) Local cash flows (5 marks) b) Foreign cash flows