Australian Automotive Group, an Australian company, is considering building a manufacturing plant in UK to expand its export market. The plant cost 140 million to build and will produce cash flows of 30 million, 35 million, 40 million, 45 millions in years 1, 2, 3 and 4, respectively. Other information is:

Australian interest rate: 1%

UK interest rate: 1.7%

Spot rate 0.60/$

What is the NPV for the project denominated in AUD using the local currency approach? Please select the most suitable option

	a.	$ 5,932,467
	b.	$ 5,600,110
	c.	$ 5,718,994
	d.	$ 5,400,580