Assume that in the original Ityesi example in Table, all sales actually occur in the United States and are projected to be $59.5 million per year for four years. Keeping other costs thesame, calculate the NPV of the investment opportunity. Assume the WACC is 7.1%. The forward exchange rates are given below.

Assume liial lll lne angina: llyesi example Ill Table a , all sales aclually e: cur in llie Linnea Slales and are prujecled in be 359.5 milllall per year lei lDul years. Keeping ulIIEr cuss me same. calculave lhe NW alme invesunenl oppenunny. Assume me WACC is 7 1%. The forward exelmge lanes am gl'ren beluw. Year 0 1 2 Cl 4 Falward Ethange Hale $151) 1,5615 1,4355 1 5153 1 3631 1 3459 Calcualle me cash {laws beluw [Rulind to time decimal places, Female exchange ram musl be rounded ll) luui declmal places) Year 0 0 Dan Table Free call llaw (milans al pannds) remain exchange iale Free cash llaw (mislans of dallars] Sales in me us (inmons giduum) TABLE 31 . 1 Expected Foreign Free Cash Flaws from ltyesi's U.K. Project C S P Fl E A D S H E E T asn llaw (milluns of dollars) Year ll 2 :l 4 Incremental Earnings Forecast [E millions] Sales 7 32500 37.500 37.500 37500 Cast al Goad: Sold 7 (15.625) (15.625) :15.625) (15,525) Gm Profit 21.875 21.075 21.875 21.075 Operating Expenses 44.167) [5.825] (5.525) (5 625) (5.525) Deweclal'lon (3.750) (3.750) (3.750) (3.7503 EBIT {4.167} 12.500 12.500 12.500 12.500 Incume tax at 40% 1.667 (5.000) [5.000) (5.000) {5.0003 Unlevarld Net Income (2.500] 7.500 7500 7.500 7500 Free Clsll Flaw 9 Plus: Depreciation 7 3.750 3.750 3.750 10 Lass: Capilal Expendnulss {15.000} 7 7 11 Less: Increases in NWC 7 7 7 12 Found Free Cash Flaw [11.5003