Assume that in the original Ityesi example in Table Ball sales actually occur in the United States and are projected to be $56.7 million per year for four years. The risk-free rate on dollars is 5% and the risk-free rate on pounds is 8%. Ityesi's WACC is 7.08%. The spot exchange rate is $1.31 per pound. The tax rate is 25% in both countries. Keeping other costs the same, calculate the NPV of the investment opportunity. Year 0 1 2 3 Forward Exchange Rate (5/) 1.4308 1.3719 1.1648 1.0909 1.2037 Calcualte the cash flows below: (Round to three decimal places. Forward exchange rates must be rounded to four decimal places.) 0 Year 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) i Data Table 1 2 3 4 TABLE 23.2 Expected Foreign Free Cash Flows from Ityesi's U.K. Project II 1 Year 2 Incremental Earnings Forecast ( million) 3 Sales 4 Cost of Goods Sold 5 Gross Profit 6 Operating Expenses 7 Depreciation 8 EBIT 9 Income Tax at 25% 10 Unlevered Net Income 11 Free Cash Flow 12 Plus: Depreciation 13 Less: Capital Expenditures 14 Less: Increases in NWC 15 Pound Free Cash Flow 37.500 37.500 37.500 37.500 -15.625 -15.625 -15.625 -15.625 21.875 21.875 21.875 21.875 -3.333 -8.125 -8.125 -8.125 -8.125 -3.750 -3.750 -3.750 -3.750 -3.333 10.000 10.000 10.000 10.000 0.833 -2.500 -2.500 -2.500 -2.500 -2.500 7.500 7.500 7.500 7.500 3.750 3.750 3.750 3.750 -15.000 -17.500 11.250 11.250 11.250 11.250