Question: plz use your own words answer this and showthe process thx!!! type the aswer Ella plc is considering investing in a new project in USA

plz use your own words answer this and showthe process thx!!! type the aswer

 plz use your own words answer this and showthe process thx!!!

Ella plc is considering investing in a new project in USA that will have a life of 4 years, initial investment is USA Dollars ($) 150,000, including working capital. = The net cash flows that the project will generate are $60,000 per annum in years 1, 2, 3 and $45,000 year 4. The residual value of the assets at the end of the project is estimated at $50,000 net of tax. + The Current spot rate for $ against pound sterling is GBP/USD 1.70. Economic forecasts expect the pound to strengthen against the USA dollar by 5% per annum over the next 4 years. The company evaluates UK projects of similar risk at 14% per annum. + REQUIRED a) Calculate the expected GBP NPV of the USA project showing all workings [6 marks] Please provide the answer here; you may increase space where necessary The company receives information that there is a 75% chance that the government in USA will expropriate the assets at the end of the project. + ( b) Calculate the expected GBP NPV of the project weighted for the probability of the possible outcomes [5 marks] Please provide the answer here; you may increase space where necessary

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