Capital Budgeting Analysis. Wolverine Corp. currently has no existing business in New Zealand but is considering establishing a subsidiary there. The following information has been gathered to assess this project:

The initial investment required is $$50$ million in New Zealand dollars $($NZ$$).$ Given the existing spot rate of $$\mathrm{.}50$ per New Zealand dollar, the initial investment in U$.$S$.$ dollars is $$25$ million. In addition to the NZ$$50$ million initial investment for plant and equipment, NZ$$20$ million is needed for working capital and will be borrowed by the subsidiary from a New Zealand bank. The New Zealand subsidiary will pay interest only on the loan each year, at an interest rate of $14$ percent. The loan principal is to be paid in $10$ years.

The project will be terminated at the end of Year $3,$ when the subsidiary will be sold.

The price, demand, and variable cost of the product in New Zealand are as follows:

$\backslash$table$[[$YEAR$,$PAICE,DEMAND,$\backslash$table$[[$VAMIADLE$],[cost$