7. International capital budgeting One of the important components of multinational capital budgeting is to analyze the cash flows generated from wbtidiary companies, Consider this case Pellegrini Southern Inc. is a ustim evaluating a project in Australia. You have the following information about the project: . The project requires an investment of A$1.240,000 today and is expected to generate cash flows of AU$1,000,000 at the end of each of the next two years The current exchange rate of the US dollar against the Australian dollar is $0.7755 per Australian dollar (AUS) The one year forward exchange rate is $0.8022/ Aus, and the two-year forward exchange rate is $0.8143/AUS. . The firm's weighted average cost of capital (WACC) is 10%, and the project is of average risk What is the dollar-denominated net present value (NPV) of this project? 5344,924 $381,232 3435,694 65363,078 ta w 62F Cloudy