QUESTION 4 (25 MARKS) Accenture AS is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is USD6,000,000. If the project is undertaken, Accenture AS would terminate the project after six years. Accenture AS's cost of capital is 13 percent, and the project has the same risk as Accenture AS's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. The current exchange rate of the Norwegian Kroner (NOK) is NOK9.1550/USD. Listed below are the estimated cash flows the Norwegian subsidiary and Accenture AS's exchange rate forecasts for the Norwegian Kroner over the project's lifetime: BBF308/03 INTERNATIONAL FINANCIAL MANAGEMENT ASSIGNMENT 2 SEPT 2022 Accenture AS is also uncertain regarding the cost of capital. Recently, Norway has experienced some political turmoil. Calculate the net present value (NPV) of this project if a 15 percent cost of capital is used instead of 13 percent. (25 marks) QUESTION 4 (25 MARKS) Accenture AS is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is USD6,000,000. If the project is undertaken, Accenture AS would terminate the project after six years. Accenture AS's cost of capital is 13 percent, and the project has the same risk as Accenture AS's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. The current exchange rate of the Norwegian Kroner (NOK) is NOK9.1550/USD. Listed below are the estimated cash flows the Norwegian subsidiary and Accenture AS's exchange rate forecasts for the Norwegian Kroner over the project's lifetime: BBF308/03 INTERNATIONAL FINANCIAL MANAGEMENT ASSIGNMENT 2 SEPT 2022 Accenture AS is also uncertain regarding the cost of capital. Recently, Norway has experienced some political turmoil. Calculate the net present value (NPV) of this project if a 15 percent cost of capital is used instead of 13 percent. (25 marks)