Consider the following international investment opportunity. It involves a gold mine that can be opened at a cost, then produces a positive cash flow, but then requires environmental clean$-$up$.$

Year $0$: $-64,000$ Euros

Year $1$: $160,000$ Euros

Year $2$: $-100,000$ Euros

The current exchange rate is $$1\mathrm{.}60=1$ Euro. The inflation rate in the U$.$S$.$ is $6$ 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 $8$ percent.

Find the dollar cash flows to compute the dollar$-$denominated NPV of this project. And also find the euro$-$zone cost of capital.