$($b$)$ XYZ Ltd$.,$ a US firm is proposing to construct a new plant in Australia. The forecasted cash flows from the proposed plant are as follows:

Details C$0$ C$1$ C$2$ C$3$ C$4$ C$5$ C$6$

Cash Flows

$($MILLIONS AUD$)-120204040354555$

The spot exchange rate of USD AUD is $1\mathrm{.}8.$ The risk free Interest rates of the USA is $5\%$ and that of Australian is $4\%.$ Being a finance manager of this company you are required to suggest to the management whether it should accept or reject the proposal.