An American MNC is considering a project in Canada that has initial costs of $25 million in U.S. dollars. Its risk-adjusted discount rate for this project is 10%. The company anticipates that the cash flows in Canadian dollars will be $10 million per year for three years and then the salvage value at the end of the three years will be $5 million Canadian dollars. Future markets indicate that the Canadian dollar will depreciate over the three years, and the future exchanges rates at $.92 in one year, $.90 in two years and $.88 in three years.

a. What is the NPV of this project?