XJ Company from the U.S.is evaluating a proposal to build a new plant in the United Kingdom.The expected cash flows in pounds are as follows: Year 0,-50; Year 1,25; Year 2,35; Year 3,40.The discount rate in BP is 14% and the discount rate in the $US is 12%.The spot rate is $US1.99/BP.Calculate the NPV in $US:
A) +25.86
B) +28.69
C) +51.46
D) +45.14
Correct Answer:
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