International Financial Management Class

An Italian firm is considering selling its line of coin-operated cappuccino machines in the U.K. . 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 \\mathrm{BP}=1.8 \\mathrm{USD} \\) and \\( 1 \\mathrm{Euro}=1.15 \\mathrm{USD} \\) The pound sterling denominated cash flows are as follows: What is the \\( \\)-denominated NPV of this project? b. 132014 Euros c. \\$67065.41 Euros d. 134234 Euros. e