An Italian firm is considering selling its line of coin-operated cappuccino machines in the U.K.The business risk will be identical to the firm's existing line of business in the euro zone,the cost of capital in the euro zone is i_€ = 10%.The expected inflation rate over the next two years in the U.K.is 3% per year and 2% per year in the euro zone.The spot exchange rates are $1.80 = £1.00 and $1.15 = €1.00. The pound sterling denominated cash flows are as follows: What is the €-denominated NPV of this project? I did not round my intermediate steps,if you did,select the answer closest to yours.

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The Answer of An Italian firm is considering selling its line of coin-operated cappuccino machines in the U.K.The business risk will be identical to the firm's existing line of business in the euro zone,the cost of capital in the euro zone is i_€ = 10%.The expected inflation rate over the next two years in the U.K.is 3% per year and 2% per year in the euro zone.The spot exchange rates are $1.80 = £1.00 and $1.15 = €1.00. The pound sterling denominated cash flows are as follows: What is the €-denominated NPV of this project? I did not round my intermediate steps,if you did,select the answer closest to yours.

An Italian Firm Is Considering Selling Its Line of Coin-Operated