Jensen Aquatics Inc., which manufactures and sells scuba gear worldwide, is considering an investment in either Europe or Great Britain. Consider the following cash flows for each project, assume a 12% wacc, and consider these to be average risk projects for the firm. If the euro was forecast to remain constant at $1.00/euro throughout the investment period, how would the investment decision now be characterized?

A) The project would be even better than forecast.
	B) The British investment should be chosen over the European investment.
	C) The NPV is $6,420.
	D) All of the above are true.

Year 0 Today)Year 1Year2Year 3 Britain Total cash inflows (E) Total cash outflows (E) Additional dollar cash inflows (S) Forecast exchange rate (S/E) Europe Total cash inflows (euro) Total cash outflows (euro) Additional dollar cash inflows (S) Forecast exchange rate ($/euro) 8000 1000 50 146 8000 1000 500 145 8000 1000 500 1.44 15,000 1.50 12000 1500 500 0.96 12,000 2000 1500 500 0.92 0 20,000 1500 500 0.94 Forecast exchange rate (S/euro) 1.00