Question 5 (10 Marks) Consider the following international investment opportunity. It involves a gold mine that can be opened at a cost, then produces a positive cash flow, but then requires environmental clean up: Year 0 80,000 Year 1 200,000 Year 2 150,000 The current exchange rate is $1.50 1.00. The inflation rate in the US, is 6 percent and in the euro zone 2 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 8 percent. Required: (1) Find the euro-zone cost of capital to compute the euro-denominated NPV of this 15 Marks project. (2) Find the dollar cash flows to compute the dollar-denominated NPV of this project. 15 Marks