1. Suppose a company has operations in the UK and France. The French project operations have expected cash flows of 5,000 in one years time and 6,000 in two years time. The UK subsidiary has expected cash flows of 7,000 in year one and 8,000 in year two. The appropriate risk adjusted cost of capital for a similar investment in dollars is 8.9 percent. You expect the French exchange rate next year to be $1.11/ in year 1 and $1.15/ in year 2. You also project the UK exchange rate of $1.16/ in year 1 and $1.21/ in year 2. What is the approximate present value of these foreign operations to the nearest dollar?

A) $20,701

B) $31,916

C) $45,577

D) $26,533