The picture is the information, the questions are below:

Required: Given the above information,

a$.$ Determine the Net Present Value $($NPV$)$ and the Internal Rate of Return $($IRR$)$ and recommend

whether Timba should proceed with this project or not. In short, make a GO or No Go decision.

b$.$ Assume that Timba is considering an alternate financing option in which it invests an additional

$$10$ million to cover the working capital requirements that avoids the Peruvian loan. If this

option is adopted, the selling price of the subsidiary, i$.$e$.,$ salvage value will increase by $18$

million pesos. Is this alternate financing arrangement better than the original one? How so$?$

Provide quantitative support for your answer.

c$.$ Would the NPV of this project be more sensitive to exchange rate volatility$/$movement if Timba

used Peruvian financing to cover the working capital loan or invested more of its own funds to

cover its working capital needs? Explain.

d$.$ Assume Timba uses the original financing arrangement and that funds are blocked until the

subsidiary is sold. The funds to be remitted are reinvested at a rate of $6$ percent after taxes

until the end of Year $3.$ How would this affect the project's NPV$?$ Show quantitative support.

e$.$ What is the break$-$even salvage value of the project if Timba uses the original proposed

financing arrangement and funds are not blocked?

f$.$ Assume that Timba decides to implement the project using the original financing arrangement.

Further, assume that after one year of operations, a Peruvian firm offers Timba $$27$ million

after taxes for the subsidiary and that forecasts for years two and three remain

unchanged. Should Timba divest the subsidiary? Why or why not? Provide quantitative support

for your answer.

g$.$ How could US multinational companies like Timba benefit from the operation of the Overseas

Private Investment Corporation $($OPIC$)$ and the Export$-$Import Bank $($Ex$-$IM Bank$)$