An American firm is evaluating an investment in Mexico. The project costs 900 million pesos, and it is expected to produce an income of 400 million pesos a year in real terms for each of the next 3 years. The expected inflation rate in Mexico is 5% a year, and the firm estimates that an appropriate discount rate for the project would be about 9% above the risk-free rate of interest.

Calculate the net present value of the project in U.S. dollars. Exchange rates are given in Table 22.1. The interest rate is about 4.5% in Mexico and 2.0% in the United States.

Note: Do not round intermediate calculations. Enter your answer in thousands rounded to 2 decimal places.

TABLE 22.1 Exchange rates, July 2020