Intro Austin Nutritionals is a U.S. producer of nutrional supplements that is planning to expand into...

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Intro Austin Nutritionals is a U.S. producer of nutrional supplements that is planning to expand into Europe. It will cost $8 million to open a subsidiary in Europe. The company expects to receive a cash flow of 4.1 million from sales in France in one year, and an additional 4.8 million from sales in Italy in one year. The Italian sales are very likely, but not certain. After one year, no more costs or revenue will accrue, and the subsidiary will have no salvage value. The spot exchange rate is $1.18 per euro and the 1-year forward exchange rate is $1.16 per euro. The company expects a spot exchange rate of $1.1 per euro in one year. The company decides to hedge its French cash flow using a forward contract, but not its Italian cash flow. Ther required rate of return for the project is 19%. Part 1 What is the NPV of the project (in $ million)? 3+ decimals Submit Attempt 2/10 for 8.9 pts. Intro Austin Nutritionals is a U.S. producer of nutrional supplements that is planning to expand into Europe. It will cost $8 million to open a subsidiary in Europe. The company expects to receive a cash flow of 4.1 million from sales in France in one year, and an additional 4.8 million from sales in Italy in one year. The Italian sales are very likely, but not certain. After one year, no more costs or revenue will accrue, and the subsidiary will have no salvage value. The spot exchange rate is $1.18 per euro and the 1-year forward exchange rate is $1.16 per euro. The company expects a spot exchange rate of $1.1 per euro in one year. The company decides to hedge its French cash flow using a forward contract, but not its Italian cash flow. Ther required rate of return for the project is 19%. Part 1 What is the NPV of the project (in $ million)? 3+ decimals Submit Attempt 2/10 for 8.9 pts.