The inflation rate in the euro zone is = 3.5%, the inflation rate in dollars is ,-4.5%, and the business risk of the investment would lead an unlevered U.S. based firm to demand a return on equity of K.-13.5%. The current spot exchange rate S(S/C)#1.35 The French government has offered the U.S MNC a concessionary loan of 400 at a rate of 5% per annum to be repaid in three equal installments. The company's normal borrowing rate in dollars (is) is 7.5% and 8.5% in Euros (e). The project will also generate an annual depreciation charge of 115 for the three years the project will run. Corporate income tax rate in the U.S is 34%. Corporate income tax rate in France is 30%. Calculate the APV of the project. (Show all your work to get partial credit). The inflation rate in the euro zone is = 3.5%, the inflation rate in dollars is ,-4.5%, and the business risk of the investment would lead an unlevered U.S. based firm to demand a return on equity of K.-13.5%. The current spot exchange rate S(S/C)#1.35 The French government has offered the U.S MNC a concessionary loan of 400 at a rate of 5% per annum to be repaid in three equal installments. The company's normal borrowing rate in dollars (is) is 7.5% and 8.5% in Euros (e). The project will also generate an annual depreciation charge of 115 for the three years the project will run. Corporate income tax rate in the U.S is 34%. Corporate income tax rate in France is 30%. Calculate the APV of the project. (Show all your work to get partial credit)