Assume that Equinor Corporation is considering the establishment of a subsidiary in Demark. The initial investment required by the parent is $5,000,000. If the project is undertaken, Equinor would terminate the project after three years. Equinor's cost of capital is 13% (discount rate for $ cash flows), and the project is of the same risk as the firm'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 Danish subsidiary will generate over the project's lifetime in Danish krone (DKK): Year 1 DKK12,000,000

Year 2 DKK17,000,000

Year 3 DKK22,000,000 The current exchange rate of the Danish krone is $.135. Equinor's exchange rate forecast for the Danish krone over the project's lifetime is listed below: Year 1 $.13

Year 2 $.14

Year 3 $.12

What is the net present value of the Danish project in dollars?

Group of answer choices

$4,399,073

$105,068

$74,073

$5,803,848