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An Italian firm is considering selling its line of coin-operated cappuccino machines in the U.K. The business risk will be identical to the firm's existing

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An Italian firm is considering selling its line of coin-operated cappuccino machines in the U.K. The business risk will be identical to the firm's existing line of business in the euro zone, the cost of capital in the euro zone is IC -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 rates are $1.80 - 11.00 and $1.15 - 01.00. The initial cost of this Investment is E100,000, and the expected cash flow from revenue in the next two years are 25,000 and 100,000, respectively. What is the denominated NPV of this project? A 1055.66 B. 556323 3.9566.75 D. 125353

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