International capital budgeting One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Consider this case: Sacramone Products Co. is a U.S. firm evaluating a project in Australia. You have the following information about the project: The project requires an investment of AU$1, 340,000 today and is expected to generate cash flows of AU$900,000 at the end of each of the next two years. The current exchange rate of the U.S. dollar against the Australian dollar Is $0.7811 per Australian dollar (AU$). The one-year forward exchange rate is $0.8096/AU$, and the two-year forward exchange rate is $0.8344/AU$. The firm's weighted average cost of capital (WACC) is 8.5%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? $249, 651 $236, 512 $328, 489 $262, 791 There are three major types of international credit markets. Read the following statement and then indicate which type of international credit market is being described. Gayawage Corp. took out a 10-year floating rate bank loan with an interest rate tied to LIBOR to finance a multinational project. Eurocredit Eurobond Foreign bond