Sebrele Enterprises Inc. is a U. S. -based firm evaluating a project in Mexico. You have the following information about the project: The project requires a 130,000 peso investment today and is expected to generate cash flows of 64,500 pesos at the end of the next three years. The current U.S. exchange rate with the Mexican peso is 11,567 pesos per U.S. dollar, and the exchange rate is expected to remain constant. The firm's WACC is 9%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? $3,451.39 $2,588.54 $2,876.16 $2,732.35 When companies evaluate project investment in foreign nations, they also have to consider the additional risk that foreign projects are exposed to compared to domestic projects, such as exchange rate risk and political risk. Expropriation is one such risk where the government of a country takes away a private business from its owners without appropriately compensating the owners. Which of the following actions should companies take to prevent expropriation? Check all that apply. use transfer pricing so that the subsidiary company pays maximum taxes to the foreign government. Block the amount of cash flow coming from the subsidiary firm to the parent company. Structure the operations of the subsidiary such that the subsidiary derives much of its value only via its relationship or integration with the parent company. Partner with local cornpanies to get access to local financing