Consider the following international investment opportunity for an Australian company: Year o Year 1 Year 2 Year 3 -50,000 15,000 15,000 20.000 The current spot rate is 1.60A$/. The inflation rate in Australia is 3% p.a. and in the euro zone is 2% p.a. The appropriate cost of capital to the Australian company for a domestic project of this risk is 8% p.a. a. Using the two different approaches learned in the class to compute the AUD-denominated NPV of this project. Do you accept the project? (10 marks) b. What is the euro-denominated IRR of this project. (3 marks) c. What is the A$-denominated IRR of this project. (2 marks)