A Canadian

A Canadian.firm acquires a British firm that will generate cash flows of 20,000 pounds next year and these cash flows will grow at 4% a year.If the British WACC is 9% and the spot exchange rate is 1.8 CAD/GBP,what is the present value (PV) of the cash flows from this acquisition to domestic shareholders?

A) $633,333
B) $654,876
C) $691,543
D) $720,000
E) $704,300