You Are Analyzing a Project with an Initial Cost of £80,000

You are analyzing a project with an initial cost of £80,000. The project is expected to return £10,000
the first year, £40,000 the second year and £50,000 the third and final year. The current spot rate is £.56. The nominal risk-free return is 5 percent in the U.K. and 7 percent in Canada. The return relevant to the project is 8 percent in the U.K. and 9.25 percent in Canada. Assume that uncovered
Interest rate parity exists. What is the net present value of this project in dollars?

A) $7,787
B) $8,002
C) $8,312
D) $8,511
E) $8,885