Question: Assume that in the original Ityesi example in Table LOADING... , all sales actually occur in the United States and are projected to be$ 63.5

Assume that in the original Ityesi example in Table LOADING... , all sales actually occur in the United States and are projected to be$ 63.5 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is 6.8 % . The forward exchange rates are given below. Year 0 1 2 3 4 Forward Exchange Rate ($/pound ) 1.7446 1.5456 1.5555 1.4674 1.5472 Year 0 1 2 3 4 Forward Exchange Rate

Year

0

Free cash flow (millons of pounds)

Forward exchange rate

Free cash flow (millons of dollars)

Sales in the US (millons of dollars)

Cash flow (millons of dollars)

1

2

3

4

The NPV is ? million.(Round to three decimal places.)

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