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You work for a firm whose home currency is the Japanese yen (JPY) and that is considering a foreign investment. The investment yields expected after-

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You work for a firm whose home currency is the Japanese yen (JPY) and that is considering a foreign investment. The investment yields expected after- tax Danish Krone (DKK) cash flows (in millions) as follows:-DKK400 in Year 0, and DKK180 in each of the 3 years of the life of the project. The expected rates of inflation in each country are constant per year: 3% in Japan, and 5% in Denmark. From the project's perspective the required return is 19.25%, while from the parent's perspective, the required rate of return is 8.14%. The spot exchange rate is JPY18.14/DKK. What is the NPV of the project from the parent company's perspective? O a. JPY829.910 million O b.JPY1,458.986 million O c. -JPY38.757 million O d. -JPY296.315 million O e. None of the options in this question are correct

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