Crestfield Industries, a German company, is considering a new project in Japan. Meanwhile, the following expected free cash flows measured in Japanese yen are assumed to be uncorrelated with the spot exchange rate. Suppose the Euro WACC of 8% is appropriate to evaluate this project. The risk-free interest rates on Euros and yen are 7% and 5%, respectively. [table] Year | FCF (¥ millions) 0 | -90 1 | 40 2 | 50 3 | 55 4 | 45 [/table] If capital markets are internationally integrated, the NPV of this project in Japanese yens is closest to:[Fill in the blank]Single choice

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A

a. ¥64.64 million.

B

b. ¥77.98 million.

C

c. ¥59.55 million.

D

d. ¥74.13 million.

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