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Can you please show works how to get the answers? [2] (70 pts.) Jensen Corp. manufactures and sells scuba gear worldwide. It considers an investment

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Can you please show works how to get the answers?

[2] (70 pts.) Jensen Corp. manufactures and sells scuba gear worldwide. It considers an investment in either Europe or Great Britain. Jensen forecast the following cash flows. Jensen will apply a WACC of 10% to British project but 12% to European project due to their enhanced riskiness. Year 0 (Today) Year 2 Year 1 Year 3 Britain Total cash inflows ( ) Total cash outflows ( ) Additional dollar cash inflows (S) Forecast exchange rate (S/ ) Europe Total cash inflows (euro) Total cash outflows (euro) Additional dollar cash inflows (S) 8000 8000 8000 15,000 1000 1000 1000 500 500 500 1.46 1.50 1.45 1.44 12,000 12,000 1500 12,000 20,000 1500 1500 500 500 500 Forecast exchange rate (S/euro) 1.00 0.96 0.94 0.92 (1) (20 pts.) The NPV (British investment) is $ %. Thus, you recommend to ( )(no cents), and its IRR is )this project because this project )the value of the firm. (Works) CFo= CF1= CF2= CF3= (2) (20 pts.) The NPV (European investment) is $( %. Thus, you recommend to )(no cents), and its IRR is this project because this project the value of the firm. (Works) CFo= CF2= CF3=

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