Assume that in the original Ityesi example in Table, all sales actually occur in the United States and are projected to be $ 64.8 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is 6.6 %. The forward exchange rates are given below.

Year	0	1	2	3	4
Forward Exchange Rate ($/pound)	1.5089	1.5873	1.4873	1.3252	1.3502

Calcualte the cash flows below:(Round to three decimal places. Forward exchange rates must be rounded to four decimal places.)

Year	0	1	2	3	4
Free cash flow (millons of pounds)
Forward exchange rate
Free cash flow (millons of dollars)
Sales in the US (millons of dollars)
Cash flow (millons of dollars)

The NPV is $____million.(Round to three decimal places.)

Data Table TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's U.K. Project SPREADSHEET Year 0 1 2 3 4 Incremental Earnings Forecast ( millions) 1 Sales 37.500 37.500 37.500 37.500 2 Cost of Goods Sold (15.625) (15.625) (15.625) (15.625) 3 Gross Profit 21.875 21.875 21.875 21.875 4 Operating Expenses (4.167) (5.625) (5.625) (5.625) (5.625) 5 Depreciation (3.750) (3.750) (3.750) (3.750) 6 EBIT (4.167) 12.500 12.500 12.500 12.500 7 Income tax at 40% 1.667 (5.000) (5.000) (5.000) (5.000) 8 Unlevered Net Income (2.500) 7.500 7.500 7.500 7.500 Free Cash Flow 9 Plus: Depreciation - 3.750 3.750 3.750 3.750 10 Less: Capital Expenditures (15.000) 11 Less: Increases in NWC 12 Pound Free Cash Flow (17.500) 11.250 11.250 11.250 11.250 Print Done