H Data Table Year Cash Flow (in millions of BLAs) A W N - O -17 Print DoneTo calculate the project's NPV, we must rst convert the Geeblaistan BLAs into U.S. dollars. Unfortunately, the futures market (the Chicago Mercantile Exchange) only provides exchange rates for the BLA for about a year forward. However, we can use the following equation to calculate the interest rate differential in the two countries: 1Year Forward Exchange Rate = (Interest Rate Differential)1 x (Spot Exchange Rate) (Related to Checkpoint 19.3) (International capital budgeting} An American firm is considering a new project in the country of Geeblaistan. This new project will produce the following cash ows, g , measured in BLAs, the currency of Geeblaistan, which are expected to be repatriated to the parent company in the United States. In addition, assume the risk-free rate in the United States is 3 percent, and that this project is riskier than most and, as such, the rm has determined that it should require a premium of 16 percent over the risk-free rate. Thus, the appropriate discount rate for this project is 19 percent. In addition, the current spot exchange rate is 0.91 SSBLAI$, and the 1-year fonNard exchange rate is 0.964BBLAI$. What is the project's NPV? The project's NPV is $|:| million. (Round to two decimals places.)