Calculation of Foreign Cash Flows and NPV. Edgar Enterprises, a U.S.-based firm, is considering a project in Mexico to produce and sell automobile components. It is a five-year project with an initial investment of USD 100,000. Each year, the project will produce 1,000 units of the product at a direct cost of MXN 200 and selling price of MXN 500. Indirect expense, not including depreciation, are expected to be MXN 100,000. Depreciation is straight line to zero. Taxes are 30 percent. Calculate cash flows and the NPV assuming an MXN discount rate of 20 percent. The current spot rate is MXNUSD = 0.20. Assume that salvage is zero and there is no working capital requirement.