A Canadian firm is considering purchasing a subsidiary in Great Britain. The subsidiary will cost 16 million and will generate cash inflows of 7.6 million per year at the end of each of the next three years. After that, the company will be worthless. The current exchange rate is 0.83 British pounds per $1. The Canadian inflation rate is expected to be 4% over this period. The current risk-free rate of interest in Canada is 5% and the risk-free rate in Great Britain is 8% Ross - Chapter 21 What is the NPV in dollars of this project using the home currency approach? A. $294,405 B. $489,269 C. $524,963 D. $631,896 E. $832,095