Example: Infinity Limited has proposed to launch a project in Turkey. The project has a life of 4 years and the forecast free cash flows (FCF) in millions of USD are: Year FCF 1 25 2 75 3 115 150 The project involves an initial outlay of USD80 million. The CFO of Infinity Limited estimates that the appropriate discount rate for projects in this class of risk to be 14%. - Turkey has been experiencing political instability of late and a fiscal crisis likely to materialize over the short- to-medium term. I - To maintain support from its citizens, the Turkish government has indicated its willingness to nationalise all foreign-owned assets. -The CFO of Infinity Limited estimates that there is a 21% of nationalisation occurring per annum. - Factoring in this political risk, should Infinity Limited accept the project? Accessibility: Unavailable N