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An Italian firm is considering investing its line of coin - operated cappuccino machines in the U . K . This project requires an initial

An Italian firm is considering investing its line of coin-operated cappuccino machines in the U.K. This project requires an initial investment of 100,000, and generates 25,000 and 100,000 in the following 2 years, respectively. The cost of capital in the euro zone is i=11%. The expected inflation rate over the next two years in the U.K. is 2% per year and 3% per year in the euro zone. The spot exchange rate is 1.00=0.4497. What is the -denominated NPV of this project? (I did not round my intermediate steps, if you did, select the answer closest to yours. )A.5504.79B.15982.64C.2970.39D.12241.03E.8561.03

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