Question: Can someone help me finish solving this problem parts A & B? I'm stuck on part A and I'm stuck on part B ( 20

Can someone help me finish solving this problem parts A & B? I'm stuck on part A and I'm stuck on part B

Can someone help me finish solving this problem parts A & B?

( 20 ) A U.S . firm is planning to invest in U. K . ] he current spot rate is $1 20 / f , and the British pound will be expected to appreciate by 5% for each year . The initial investment is $20 million , and the expected cash flows are $10 million and $ 12 million at the end of the first and the second year , respectively . Assume that the annual discount rates are 6% in the U.S and 30% in the U. K a Estimate V . it ( the net present value from a local subsidiary's perspective ) Value In SUDS spe Ve ) . $ 20 M + 10 m 12 m X 1 03 ( 2 03 ) 1 019 9 b . Estimate V . is ( the net present value from a parent's perspective ) E ( S ) ( 1 20 / 8 ) ( 1 05 ) = # 1 . 26 1 E ( S ) = ( $ 1 20 /5 ) ( 1 05 ) = $ 1 323 8 16)

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