plese help! captial budgeting

9. International capital budgeting One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies. Foreign governments have certain motivations to restrict the repatriation of earnings of multinational firms to the parent company. This implies that not all earnings and profits generated at the subsidiary can be used by the parent company to pay dividends or to reinvest. Thus, from the perspective of the parent company, the relevant cash flows for the parent company in the forelgn investment analysis are the cash flows that: the foreign government repatriates. the subsidiary sends back to the parent company. the subsidiary firm pays to the foreign government as taxes. Consider this case: Sacramone Products Co. is a U.S. flirm evaluating a project in Australia. You have the following information about the project: - The project requires an Investment of AU\$800,000 today and is expected to generate cash flows of AU\$1,200,000 at the end of each of the next two years. - The current exchange rate of the U.S. dollar against the Australlian dollar is $0.7811 per Australlian dollar (AUS). - The one-year forward exchange rate is $0.8096/As, and the two-year forward exchange rate is $0.8344/AU$. - The firm's weighted average cost of capitar (wacc) is 9.5%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? (Note: Do not round your intermediate calculations.) $1,262,046 $1,152,303 $1,097,431 $1,316,917 What is the dollar-denominated net present value (NPV) of this project? (Note: Do not round your intermediate calculations.) 51,262,046 51,152,303 $1,097,431 51,316,917 When companles evaluate project investment in forelgn nations, they al so have to consider the additional risk that foreign projects are exposed to compared to domestic projects, such as exchange rate rikk and political risk, the owners company can make. Partnet with local cointaries to oet access fo lotal financina