the cost of capital is 15 percent.

8. A project in France yields a series of Euro cash flows as the following: 600 200 500 300 0 2 3 Please solve for the project IRR in Euros (4 points) Solve for the equivalent USD IRR. The exchange rate of Euro today is $1.25 per Euro. The inflation rate in the euro zone is 3%, the inflation rate in dollars is Ps - 6%. Assume that international fisher effect and purchasing power parity holds. (6 points)