entide_1078109 1&questionum 5 An Italian firm is considering selling its line of coin-operated cappuccino machines in the UK. The business risk will be identical to the firms existing line of business in the euro zone. The cost of capital in the Euro Zone is 10% The expected Inflation rate over the next three ears is 3% in the UK and 2% in the Euro zone. The Spot exchange rates are 1 BP=1.8 USD and 1 Euro 1.15 USD The pound sterling denominated cash flows are as follows: What is the 6-denominated NPV of this project? YEAR O YEAR 1 YEAR 2 YEAR 3 - 100,000 25000 100000 75000 O a. 132014 Euros Ob. 119768.32 Euros Oc. 91217,04 Euros d. 134234 Euros e. S67065.41 Euros