Details: Great Southern Spares, an Australian company, is considering establishing an operation in the United Kingdom to manufacture parts. The details of the investment are as follows: -IDEI Initial cost of investment now 500,000 After tax net cash flow ear 1 250,000 After tax net cash flow ear 2 250,000 After tax net cash flow year 3 20,000 After tax net cash flow ear 4 20,000 The required rate of return from capital investments for Great Southern Spares is 10% pa. and the investment is estimated to have a salvage value of zero at the end of the 4th year. The UK operation will distribute 100% of its after-tax cash flows to Great Southern Spares as a dividend at the end of each year. Exchange rates between AUD and GBP are forecasted as follows over the life of the investment: GBP 0.59 = AUD 1.00 GBP 0.52 = AUD 1.00 GBP 0.60 = AUD 1.00 Year 3 GBP 0.55 = AUD 1.00 Year 4 GBP 0.65 = AUD 1.00 Required: a) Determine the net present value (NPV) of the foreign investment from the project perspective. Show all workings and calculations. (3 marks) b) Determine the net present value (NPV) of the foreign investment from the parent company perspective. Show all workings and calculations. (3 marks) c) Should Great Southern Spares proceed with this foreign investment? Explain why or why not. (2 marks) d) Identify and explain two risks that are associated with this foreign capital investment. Provide specific discussion for this investment, not general discussion about foreign capital investment. (2 marks)