Use the information for the following 3 questions. Assume that Baps Corp. is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5 million. If the project is undertaken, Baps would terminate the project after four years. Baps's cost of capital is 13 percent, and the project has the same risk as Baps's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the project's lifetime in Norwegian kroner (NOK): Year 1 Year 2 Year 3 Year 4 NOK 10,000,000 NOK15,000,000 NOK 17,000,000 NOK20,000,000 The current exchange rate of the Norwegian kroner is $.135. Baps's exchange rate forecasts for the Norwegian kroner over the project's lifetime are listed below: Year 1 Year 2 Year 3 Year 4 $.13 $.14 S.12 S.15 19) Refer to the information above. What is the cash flow to parent company in the second year? a $2,100,000 b. $1,950,000 c. $2,200,000 d. $2.040,000 20) Refer to the information above. What is the net present value of the Norwegian project? a. -S803,848 b. $5,803,848 c. $1,048,829 d. None of these are correct. 21) Refer to the information above. Baps is also uncertain regarding the cost of capital. Recently. Norway has experienced some political turmoil. What is the net present value (NPV) of this project if a 16 percent cost of capital is used instead of 13 percent? a. -$17.602.62 b. $8,000,000 c. $1,048,829 d. $645,147