Time left 1700 8 The next a questions are based on the following information: 3 You work for a firm whose home currency is the Euro (EUR) and that is considering a foreign investment. The investment yields expected after tax Swis Franc (SFR) cash flows on millions) as follows SFR305 in Year and SFR130 in Year 1. The forecast free cash flow will the increase by 5% per annum over the next 3 years. At the end of 4 years, the life of the project will end. The expected rates of inflation in each country are constant per year in the Eurozone, and 9.00% in Switzerland. From the project's perspective the required return i 1874 while from the parent's perspective, the required rate of retum is 8.52%. The spot exchange rate is EURO.9615/SFR What is the NPV of the project from the project's perspective? O a EUR98 206 million O SFR107 993 million SFR 102.134 million d. EUR 106 220 million None of the options in this question are correct 39 What is the NPV of the project from the parent companys perspective? EURGO 036 million S52217547 million million d. SET 25 million Non of the options in this question are correct What is the NPV of the project from the parent company's perspective? O EUR60.036 million b. SFR217.547 million EUR24.438 million od SFR287 229 million None of the options in this question are correct. 0 What is the correct course of action for the managers of the firm O a Accept the project O b. Accept the project. However, the firm should try to find a way to hedge the currency rick now to capture the NPV. Finance in the local currency currency forwards and sell the project to a local investor Oc Reject the project because it is only adding value from the parents perspective because of forecast fourable movements in the exchange rate Od Reject the project. It is not financially viable from both the project's perspective and the parent's perspective O None of the options in this question are correct Finish attempt page