please answer and show understanding/working out

1) You are considering importing toys from Holland. In order to start your business, you will have to make a $1 million investment. The expected cash flows generated by your investment are $200,000 per year forever. Your discount rate is 15%. These cash flows are due to expected revenues of $800,000 per year, and variable costs of $600,000 per year. a) Is this a good investment opportunity? Why? b) Now consider that if the euro appreciates, your variable costs go up to $900,000 per year, while if it depreciates, your variable costs go down to $300,000 per year. There is a 50% probability of either of these outcomes in any given year. How does this volatility affect the value of your investment? Discuss