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Question 15 8 pts A US firm is considering a 1 million investment project in the UK, expecting to receive 0.5 million in year 1,
Question 15 8 pts A US firm is considering a 1 million investment project in the UK, expecting to receive 0.5 million in year 1, and 0.8 million in year 2. The risk adjusted cost of capital for a similar US project is 10%. The current spot exchange rate is 1.5/$. A one-year government bond rate is 2.5% in the US and 1.75% in the UK. A two-year government bond rate is 3.0% in the US and 2.0% in the UK. What is the NPV of the project based on the home currency approach? (Please, do not round intermediate calculations. Provide your final answer rounded to 2 decimal places with no dollar symbol ($))
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