Compact Computers INC a manufactuer of video games, has decided to build production capibilty in the philipines. At the moment, only the efollowing summary of expected afterfax cash flows is available

year 0 1 2 3

peso cash inflows 718,800 712,400 812,400

peso cash outflows 45,000 29,600 24,200 64,300

$ cash outflows 22,000 1,150 2,220 3,700

The exchange rate today is P53.4200/$ . Compact Computers expects the peso to depreciate by 5% per year against the U.S. dollar for the coming three years. The WACC for CC is 12%

What is the Currency rate at the end of year 2 ?

a) P59.1911/$

b) P58.8956/$

c) P56.2316/$

d) P50.8762/$