Question: Cal Co . from the U . S . is evaluating a proposal to build a new plant in the U . K . The

Cal Co. from the U.S. is evaluating a proposal to build a new plant in the U.K. The expected cash flows in pounds are as follows: Year 0,-70 million GBP (British Pond); Year 1,40 million GBP; Year 2,50 million GBP; Year 3,60 million GBP. The discount rate in BP is 12% and the discount rate in the US$ is 10%. The spot rate is 0.7813 GBP/US$. Calculate the NPV of the project in USD.

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