(10 pоints) Internаtiоnаl Cаpital Budgeting Yоu work for a U.S. firm that is considering an investment in Germany. The project generates expected after-tax cash flows in euros (€) as follows (in millions): Year 0 1 2 FCF_Germany -400 250 300 Additional information: Expected inflation: U.S.: 5% Germany: 3% Discount rates: iEURO = 12.8% iUSD = 15% Spot exchange rate: $1.20/€ a. (4 points) Compute the expected future exchange rate (USD/EURO) for Year 1 and 2. b. (4 points) Calculate NPV from the parent’s perspective by converting euro into dollars at expected future spot rates and then discounting at the appropriate rate in dollars. 0 1 2 FCF_Germany -400 250 300 Exchange Rate (USD/EURO) FCF_U.S. Discount rate NPV (USD) c. (1 point) What is the IRR of the project? d. (1 point) Should the management accept this project? Why? In your answer, clearly state and apply the NPV decision rule and the IRR decision rule to support your investment decision.