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7. International capital budgeting One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Consider this case: LeBron Development Inc. is a U.S. firm evaluating a project in Australia. You have the following information about the project: The project requires an investment of AU$800,000 today and is expected to generate cash flows of AU$ 1,300,000 at the end of each of the next two years. The current exchange rate of the U.S. dollar against the Australian dollar is $0.7811 per Australian dollar (AUS). The one-year forward exchange rate is $0.8096 / AUS, and the two-year forward exchange rate is $0.8344 / AU$. The firm's weighted average cost of capital (WACC) is 8.5%, and the project is of average risk What is the dollar-denominated net present value (NPV) of this project? $1,266,569 $1,203,241 $1,329,897 $1,519,883 There are three major types of international credit markets. Read the following statement and then indicate which type of international credit marke is being described. The one-year forward exchange rate is $0.8096 / AU$, and the two-year forward exchange rate is $0.8344 / AUS. . The firm's weighted average cost of capital (WACC) is 8.5%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? $1,266,569 $1,203,241 $1,329,897 O $1,519,883 There are three major types of international credit markets. Read the following statement and then indicate which type of international cred is being described. Georia Industries Inc., a U.S.-based company, issued dollar denominated bonds in China and India to finance a multinational project. Eurocredit Foreign bond Eurobond