Question 44 (20 marks) U.S.-based MNC, Cantoon Co. is considering establishing a two-year project in the U.K. with a US$50 million initial investment. The firm's cost of capital is 10%. The required rate of return on this project is 12%. The project is expected to generate cash flows of 11 million in Year 1 and 18 million in Year 2, and is expected to have a salvage value of 20,000,000. 'Assume U.S. tax rate of 20% on remitted funds and a stable exchange rate of $1.58 per over the next two years. All cash flows are remitted to the parent at the end of two years. Required: i) Calculate the Net Present Value of the project. (12 marks) ii) Calculate the break-even salvage value of the project. (6 marks) iii) Should Cantoon Co. accept the project? Justify your answer. (2 marks)