A U.S. based company can make an immediate investment of 54 million in the united Kingdom. The current exchange rate between the UK pound and the U.S. dollar is $1.36. The net cash inflows the company expects to realice from the investment and the expected exchange rates when they occur are listed in the table below:

Year Project Cash Flow Exchange Rate

1 15.0 mil (pounds) $1.30

2 30.0 mil (pounds) $1.28

The company requires a 10% rate of return on this investment in US. Using the home country currency approach, the U.S. dollar net present value (NPV) of the project is closest to

a. -$25.33m

b. $9.76m

c. $2.90m

d. -$4.53m