Assume that Carapaz Corp. is considering the establishment of a subsidiary in New Zealand. The initial investment required by the parent is $15 million. If the project is undertaken, Carapaz would terminate the project after four years. Carapaz's cost of capital is 13 percent, and the project has the same risk as Carapaz's existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. Listed below are the estimated cash flows the subsidiary in New Zealand will generate over the project's lifetime in New Zealand Dollars (NZD):

Year 1	Year 2	Year 3	Year 4
NZD5,000,000	NZD7,000,000	NZD6,000,000	NZD14,000,000

The current exchange rate of the New Zealand Dollar is $0.735. Carapaz's exchange rate forecasts for the New Zealand Dollar over the project's lifetime are listed below:

Year 1	Year 2	Year 3	Year 4
$0.72	$0.74	$0.75	$0.73

Assume that NZD6,000,000 of the cash flow in Year 4 represents the salvage value. Carapaz is not completely certain that the salvage value will be this amount and wishes to determine the break-even salvage value, which is $____.

Question 6 options:

	$1,548,625
	$2,894,254
	$1,723,333
	$962,378