One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Consider this case: Jing Associates Inc. 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$1,000, 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 $0.7877 per Australian dollar (AUS). The one-year forward exchange rate is $0.8109/AU$, and the two-year forward exchange rate is $0.8455/AU$. The firm's weighted average cost of capital (WACC) is 9%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? $400, 067 $360, 060 $340, 057 $460, 077 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. Expert Certising Inc., a British company, issued U.S. dollar-denominated bonds in Chicago to fund its U.S. operations. Euro credit Eurobond Foreign bond