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Husky Corporation is considering an investment project in Canada. The project has an initial cost of CAD602,000 and is expected to produce cash inflows of CAD220,000 a year for four years. The project will be worthless after four years. The risk-free rate in the United States is 2 percent and the risk-free rate in Canada is 2.4 percent. The current spot rate is CAD1 = $.742. Husky's required return on dollar investments of this type is 12 percent. What is the net present value of this project in U.S. dollars using the foreign currency approach? O $52,810 O $48,367 $44.491 O $40,769 O $36.915 Assume a risk-free asset in the U.S. is currently yielding 1.9 percent while a Canadian risk-free asset is yielding 2.3 percent. The current spot rate is CAD1.361. What is the approximate 2- year forward rate if interest rate parity holds? O CAD1.3688 O CAD1.3719 O CAD 1.3754 O CAD1.3786 O CAD1.3799 Assume the current spot rate is CAD1.3610 and the 1-year forward rate is CAD 1.3550. The nominal risk-free rate in Canada is 2.23 percent while it is 2.16 percent in the U.S. Using covered interest arbitrage you can earn an extra_profit over that which you would earn if you invested $1 in the U.S. for one year. O $0.0036 O $0.0040 $0.0044 O $0.0048 $0.0052