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Lawson is a UK based wine and spirits company. It seeks to create a fine wine division to enhance its portfolio of global properties. The

Lawson is a UK based wine and spirits company. It seeks to create a fine wine division to enhance its portfolio of global properties. The CFO is scrutinizing a proposal to make an investment in a vineyard in Chile. It requires the purchase of 20 acres of vineyards in the Maipo valley and setting up the requisite infrastructure for processing grapes and bottling wine. The project is expected to last 5 years after which an exit through sale to a local affiliate is assumed. The table below lists the cash flows denominated in the Chilean Peso (CLP). Assume a spot rate GBPCLP =600.
\table[[Time,Cash Flow (CLP millions)],[0,-200],[1,100],[2,80],[3,160],[4,140],[5,240]]
The appropriate CLP discount rate for projects of this nature is 15%. What is project NPV in CLP?
A) $152.018 CLP mil
B) $352.018 CLP mil
C) $395.941 CLP mil
D) $252.018 CLP mil
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