You observe that the inflation rate in the United States is 2.6 percent per year and that T- bills currently yield 3.2 percent annually. Use the approximate international Fisher effect to answer the following questions, a. What do you estimate the inflation rate to be in Australia, If short-term Australian government securities yield 4 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 7 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 9 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) % % a. Australian inflation rate b. Canadian inflation rate c. Taiwanese inflation rate % Lakonishok Equipment has an investment opportunity in Europe. The project costs 9.5 million and is expected to produce cash flows of 1.6 million in Year 1, 2.1 million in Year 2, and 3.2 million in Year 3. The current spot exchange rate is .94/$ and the current risk-free rate in the United States is 2.3 percent, compared to that in Europe of 1.8 percent. The appropriate discount rate for the project is estimated to be 13 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated 7.8 million What is the NPV of the project? (Do not round Intermediate calculations and enter your answer in dollars, not in millions, rounded to 2 decimal places.e.g., 1.234,567.89.) NPV s 1,404,385 52