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Redy Tody, an Indian-based pharmaceutical firm, is considering a project in Canada. The following table lists foreign currency (CAD) cash flows. The CAD is currently

Redy Tody, an Indian-based pharmaceutical firm, is considering a project in Canada. The following table lists foreign currency (CAD) cash flows. The CAD is currently trading at equals INR30/CAD. Assume that future spot rates are equal to the current spot rate. The WACC of the firm (in INR) is 16 percent.

Calculate the project cash flows in INR, and determine the NPV.
- Year Cash Flows (CAD) Cash Flows (INR)@INR30/CAD
- 0 -120,000 ?
- 1-3 40,000 ?
- 4 90,000 ?

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