RC is considering the construction of a new barrel plant in Spain. The

forecasted cash flows in millions of euros are below. The spot exchange

rate is $$1\mathrm{.}2=$e$1.$ The interest rate in the United States is $8\%,$ and the euro

interest rate is $6\%.$ You can assume that RC$$s production is effectively

risk$-$free. Calculate the NPV of the euro cash flows from the project.

What is the NPV in dollars?

C$0$ C$1$ C$2$ C$3$ C$4$ C$5$

$-801020232725$

$($a$)$ e$7\mathrm{.}58$ million and $$9\mathrm{.}10$

$($b$)$ e$6\mathrm{.}11$ million and $$7\mathrm{.}90$

$($c$)$ e$6\mathrm{.}61$ million and $$5\mathrm{.}51$

$($d$)$ e$6\mathrm{.}61$ million and $$7\mathrm{.}94$