You Want to Invest in a Riskless Project in London

You want to invest in a riskless project in London.The project has an initial cost of £50,000 and is expected to produce cash inflows of £28,000 a year for two years.The project will be worthless after two years.The expected inflation rate in the U.K.is 2.2 percent while it is 2.6 percent in the U.S.A risk-free security is paying 3.9 percent in the U.S.The current spot rate is $1 = £.63.What is the net present value of this project in U.S.dollars? Use the foreign currency approach.

A) $5,065.78
B) $3,587.74
C) $2,010.61
D) $5,211.18
E) $6,998.04