A Chicago-based company plans to make a 2 million euro investment in Berlin, Germany. Cost of capital for this project is 15%. The company will make specialized tubes for solar panels. The 3-year project is expected to generate the following set of cash flows:

Year	Net CF in Euro
0	-2,000,000
1	700,000
2	800,000
3	1,500,000

The spot exchange rate for the euro currency is $1.25. The term structure of interest rates for both the US Treasury bonds and German government bonds (both are considered default risk free) are as follows:

	US	GERMAN
Term	Yield	Yield
1	1.29%	2.50%
2	1.57%	2.54%
3	1.79%	2.86%

Using the cash flow conversion approach, calculate the NPV of this international project.

a. -$26,205.01

b. $188,560.97

c. $197,051.85