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: Pellegrini Southern 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$987,000 today and is expected to generate cash flows of AU$1,200,000 at the end of each of the next two years. The current exchange rate of the U.S. dollar against the Australian dollar is $0.7811 per Australian dollar (AUS). The one year forward exchange rate is $0.8096 / AUS, and the two-year forward exchange rate is $0.8344 / 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? $939,758 $986,746 5845,782 $798,794 There are three major types of international credit markets. Read the following statement and then indicate which type of international credit marke What is the dollar-denominated net present value (NPV) of this project? $939,758 O $986,746 O $845,782 O $798,794 There are three major types of interational credit markets. Read the following statement and then indicate which type of international credit market is being described Canoqola Domain Inc, a British company, issued U.S. dollar-denominated bonds in Chicago to fund its U.S. operations Eurobond Eurocredit Foreign bond C SC