6. International capital budgeting Aa Aa One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Consider this case: Sebrele Enterprises Inc. is a US firm evaluating a project in Australia. You have the following information about the project: The project requires an investment of AU$1,230,000 today and is expected to generate cash flows of AU$1,300,000 at the end of each of the next two years. The current exchange rate of the US dollar against the Australian dollar is $0.7811 per Australian dollar (AU$). The one-year forward exchange rate is $0.8096 / AU$, and the two-year forward exchange rate is $0.8344 / AU$. The firm's weighted average cost of capital (WACC) is and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? O $826,031 O $780,140 O $1,055,484 0 $917,812 There are three major types of international credit markets. Read the following statement and then indicate which type of international credit market is being described. Nitreca Chemicals Inc., a British company, issued US dollar-denominated bonds in Chicago to fund its US operations. O Foreign bond O Eurocredit O Eurobond