Question $6$

An Italian firm is considering selling its line of coin$-$operated cappuccino machines in the

U$.$K$.$ The business risk will be identical to the firm's existing line of business in the euro

zone, the cost of capital in the euro zone is $10\%.$ The expected inflation rate over the next

two years in the U$.$K$.$ is $3\%$ per year, and $2\%$ per year in the euro zone. The spot exchange

rates are $$\frac{1\mathrm{.}80}{}$ and $$\frac{1\mathrm{.}15}{}.$ The pound sterling denominated cash flows are as follows:

Year $0$ Year $1$ Year $2$

$-100,00025,000100,000$

What is the $-$denominated NPV of this project? Note: do not round intermediate steps.

Round the final answer to the nearest euro.