Assume that in the original Ityesi example in Table ,

all sales actually occur in the United States and are projected to be $64.9 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is 7.1%. The forward exchange rates are given below.

Year	0	1	2	3	4
Forward Exchange Rate ($/pound)	1.6872	1.4899	1.5227	1.3928	1.5772

calculate each of the following below, the cash flows below per each year: (round to three decimal places)

free cash flow (millions of pounds) ?

foward exchange rate ?

free cash flow ( millions of dollars)?

sales in US (millions of dollars)?

cash flow (millions of dollars)?

TABLE 31.1 SPREADSHEET Expected Foreign Free Cash Flows from Ityesi's U.K. Project Year 2 Incremental Earnings Forecast (E millions) 1 Sales 2 Cost of Goods Sold 3 Gross Profit 4 Operating Expenses 5 Depreciation 6 EBIT 7 Income tax at 40% 8 U Free Cash Flow 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increases in NWC 37500 37500 37500 37500 (15.625) 15.625) 15.625) 15.625) 21.875 21.875 21.875 21.875 (4.167) (5.625) (5.625) (5.625) (5.625) - (3.750) (3.750) (3.750) (3.750) (4.167) 12.500 12.500 2.500 12.500 1.667 5.000 5.000 (5.000 (5.000) (2.500) 7500 7500 7500 7500 nlevered Net Income 3.750 3.750 3.750 3.750 (15.000) 12 Pound Free Cash Flow (17.500) 11.250 11.250 11.250 11.250