$15.$ A project in Germany requires an initial investment of $3$ million Euros $().$ Required rate of return for this project is $12\%.$ The project is expected to generate net cash flows to the subsidiary of $2$ million and $4$ million in the two years of operation, respectively. The project has salvage value of $1$ million at the end of year $2.$ The value of the is expected to remain constant at $$1\mathrm{.}50$ over the next two years. Assume that the subsidiary in Germany will finance the project by borrowing from a local bank that charges $6\%$ interest rate. Given the information, which of the following is correct?A$.$ Subsidiary financing will result in a reduced amount of cash remitted back to the parent during operating years due to interest payments.B$.$ The parent may find the subsidiary financing more desirable because it will likely result in higher NPV of the project.C$.$ Parent financing of the project will result in higher exchange rate exposure for the parent.D$.$ The amount of initial investment of the project is greater if parent finances the project, compared to that if the subsidiary finances.E$.$ All of the above are correct.