You are offered an international investment opportunity, i.e., a coal mine that can be opened at a cost, then produces a positive cash flow in Year 1, but then requires some additional investment such as a clean up in Year 2. Year o Year 1 Year 2 -60,000 200,000 -80,000 The current exchange rate is $1.80 = 1.00. The inflation rate in the U.S.is 4 percent and in the euro zone 2 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 7 percent. a) Find the dollar cash flows to compute the dollar-denominated NPV of this project. (Hint: you can find the Year 1 and Year 2 exchange rates using the inflation rates provided in the question, convert cash flows to USD and then find the NPV) b) Explain (don't solve) in your own words how you would approach this problem if I asked you to use the Adjusted Present Value approach rather than the NPV