Texas Innovation (TI) (U.S) is considering investing Rs100,000,000 in India to create a wholly owned tile manufacturing plant. After five years the subsidiary would be sold to Indian investors for Rs160,000,000. A pro forma income statement for the Indian operation predicts the generation of Ra8,000,000 of annual cash flow. The initial investment will be made on December 31, 2021, and cash flow will occur on December 31" of each succeeding year. Annual cash dividends to TI from India will equal 75% of accounting income. The US. corporate tax rate is 40% and the Indian corporate tax rate is 54%. Because the Indian tax rate is greater than the US tax rate, annual dividends paid to TI will not be subject to additional taxes in the United States. There are no capital gains taxes on the final sale. TI uses a weighted average cost of capital of 12% on domestic investment but will add 6% points for the Indian investment because of perceived greater risk. TI forecasts the rupee/dollar exchange rate for December 31" on the next six years are listed below. Spot Today: Rs 50/USD and every year exchange rate will increase by 4 Rs. For example, the| next year exchange rate will be Rs 54/USD, two years from now, it will be Ra 50/USD Assumptions Values Assumptions Dividend Values distribution per Initial investment in India (Rs) 100,000,000 year 75.00% US corporate tax Indian corporate tax rate 51.00% rate 40.00% India risk Sale price in year 5 (Rs) 160,000,000 premium to WACC 6.00% Annual Sales (Rs) 30,000,000 COGS (Rs) 17,000,000 Depreciation (Rs) 1,000,000 9.00% TI's WACC What is the net present value and internal rate of return on this investment from parent perspective?