ent project in U.K. The investment involves 19.10 ) AU.S. company is evaluating a 2 year investment proiect in U.K. The investment an initial investment of 10 million pounds and is expected to generate cash flows of pounds each year in the next two years. The spot exchange rate is 1.4000 dollar/pound.me risk-free one-year and two-year interest rates in the U.S. are 2% and 3%, respectively, and those in the UK are 3% and 4%, respectively. 1) Estimate the expected exchange rates between the US dollar and the British pound one year and two years from now, respectively. (5) 2) Estimate the NPV of the project. Suppose the appropriate WACC for this project is 10%