You Are Analyzing a Project with an Initial Cost of £150,000

You are analyzing a project with an initial cost of £150,000. The project is expected to return
£25,000 the first year, £55,000 the second year and £110,000 the third and final year. The current
spot rate is £0.5086. The nominal risk-free return is six percent in the U.K. and 6.5 percent in the U.S. The return relevant to the project is 12 percent in the U.S. Assume that uncovered interest rate parity exists. What is the net present value of this project in U.S. dollars?

A) -$8,211
B) -$7,465
C) $8,505
D) $8,730
E) $8,947