WOOCO sume that in the original Ityesi example in Table , all sales actually occur in the United States and are projected to be $600 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opport Year Forward Exchange Rate (S/E) 1.6000 1.55511.51151.46921.4280 Calcualte the cash flows below. (Round to three decimal places. Forward exchange rates must * Data Table Year Free cash flow (millons of pounds) Forward exchange rate Free cash flow (millons of dollars) Sales in the US (millons of dollars) Cash flow (millons of dollars) TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's U.K. Project SPREADSHEET Year 0 234 Incremental Earnings Forecast (8 millions) 1 Sales - 37500 37500 37500 37.500 2 Cost of Goods Sold (15.625) (15.626) (15.625) (15.625) 3 Gross Profit 21.875 21.875 21.875 21.875 4 Operating Expenses (4.167) (5.625) (5.625) (5.625) (5.625) 5 Depreciation (3.750) (3.750) (3.750) (3.750) 6 EBIT (4.167) 12.500 12.500 12.500 12.500 7 Income tax at 40% 1.667 (5.000) (5.000) (5.000) (5.000) 8 Unlevered Net Income 12.500) 7500 7500 7500 7500 Free Cash Flow 9 Plus: Depreciation - 3.750 3.750 3.750 3.750 10 Less: Capital Expenditures (15.000) 11 Less: Increases in NWC 12 Pound Free Cash Flow (17.500) 11.250 11.250 11.250 11.250 Print Done Assume that is the originally came in b is 60' The forward exchange rates are given below a se actually in the United Swes and are projected to be 360 millioner Keeping the cost same ca the NPV of the investment Assame the WACC Ford Exchange Rate (SC) 16000 15851 15115 t hecah flows below and to the decimal place for Ca Free cash flow monsol pend) Sales in the U Cachows nion of dots of dollars TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's UK. Project SPREADSHEET Yar 0 1 2 3 4 Incremental Earnings forecast 1 million 37000 37000 1700 2 Cost of sold (15625 15.606 1665 Gross Profit 2 21821875 276 4 Opong Expenses 14.16715.625 562 506 5 Deprecation 7501 750 14.187120012500 12500 12.000 7 income tax 40% t (40I 500 L M L DOI 8 Unlevered Net Income P 7 500 2500 2500 2500 Free Cash Flow 9 Plus Depreciation 30750 3.750 10 Capa pond 12 Pound Free Cash Flow 117.5000 1125 11250 11.250 11.250