The Brazilian meat company SoCarnes wishes to start production in France. This new production is associated to a project with the following forecasted cash flows in euros.. The cost of capital in France is 10%, and the spot exchange rate is 6.2 BR$ / 1€ (1 euro  buys 6.2 Brazilian reals). The risk-free rate for Brazil is 7% and the risk-free rate for Franceis 3%.Table Year01 2 3 4 5CF (in euros) -1000 290 320 370 400 400
a) What is the project value in Brazilian reals? You should assume that SoCarnes  sells forward the future euro cash flows and convert them to Brazilian reals each  period.b) Provide another simpler method to compute the project value in Brazilian reals with  the same answer as in question:c) Discuss qualitatively what is the proper cost of capital to be considered by the  Brazilian investors in France in the example above. Be precise on the assumptions  you make on the Brazilian investors and the French project. d) What would happen if SoCarnes could not perfectly hedge its foreign exchange  exposure, because of a lack of a functioning forward exchange market? Give  suggestions on how So Carnes could mitigate the exchange rate risk.