Wer uns Jing Associates Inc. is a U.S. firm evaluating a project in Australia. You have the following information about the project: The project requires an investment of AU$987,000 today and is expected to generate cash flows of AU$900,000 at the end of each of the next two years. The current exchange rate of the U.S. dollar against the Australian dollar is $0.7877 per Australian dollar (AUS). The one-year forward exchange rate is $0.8109/AU$, and the two-year forward exchange rate is $0.8455/AUS. The firm's weighted average cost of capital (WACC) is 8%, and the project is of average risk. What is the dollar-denominated net present vlue (NPV) of this project? (Note: Do not round your intermediate calculations.) $468,080 O $578,216 $633,284 O $550,682 $550,682 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. Repatriate the maximum amount of cash from the subsidiary to the foreign government. Use transfer pricing to buy raw materials from the parent company at the lowest possible price to minimize the profits the parent company can make. Partner with local companies to get access to local financing. 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. LOM Save & Continue