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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 investment of 100,000, and generates

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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 investment of 100,000, and generates 25,000 and 100,000 in the following 2 years, respectively. 2 The cost of capital in the euro zone is i =10%. The expected inflation rate over the next two years in the U.K. is 3% per year and 2% per year in the euro zone. The spot exchange rate is 1.5652 =1.00. 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. 2,270.79 O B. 7,223.14 OC. 5563.17 O D. 3,554.29 Reset Selection

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