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

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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