7. International capital budgeting One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Consider this case: Jing Associates Inc. is a U.S. firm evaluating a project in Australia. You have the following information about the project: The project requires an investment of AU$1,340,000 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 U.S. dollar against the Australian dollar is $0.7795 per Australian dollar (AU$). The one-year forward exchange rate is $0.8088 / AU$, and the two-year forward exchange rate is $0.8234 / AU$. The firm's weighted average cost of capital (WACC) is 8%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? O $762,064 O $1,016,086 O $846,738 O $931,412