Worldwide Satellites Inc. (WSI), a U.S. multinational, is evaluating a new project in France. This project will cost EUR 25 million in fixed assets (satellite machine) and will require an increase in NOWC of EUR 2 million. Both will be provided by the parent. In the next 4 years, this new project will provide additional revenue of EUR 15 million per year and incur operating cost of EUR 2 million per year (including the EUR 800,000 of annual license and management fees). The satellite machine involved will be depreciated at rates of 33%, 45%, 15%, and 7% for the next four years and expected to have no salvage value. But the investment in NOWC will be fully recovered. The spot exchange rate is USD1.20/EUR. Suppose this spot exchange rate between euros and dollars is a good indicator of what exchange rates will be during the next 4 years. The projects cost of capital is 10% and the firms tax rate is 30% in France and 40% in US.