Smith Enterprises International Investment

Smith Enterprises International Investment
Smith Enterprises is considering opening a new manufacturing plant in France. The cost of the new plant will be €25 million and the plant is expected to generate after tax cash flows of €10 million at the end of each year for the next 4 years. After that the plant will be worthless. The current €/$ exchange rate is €0.8166/$. The expected rate of inflation for the U.S is 2.5% per year. The risk free rate in the U.S. is 4% and the risk free rate in France is 6%.
-Refer to Smith Enterprises International Investment.What is the NPV of the investment in US dollars when evaluating the € denominated cash-flows? Assume a required return of 15%.

A) $4.347 million
B) $2.899 million
C) $7.852 million
D) $9.514 million