Assume that Oleson Corp. is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5 million. If the project is undertaken, Oleson's would terminate the project after four years. Oleson's cost of capital is 11 percent, and the project has the same risk as Oleson'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 Norwegian subsidiary will generate over the project's lifetime in Norwegian kroner (NOK):

Year 1

Year 2

Year 3

Year 4

NOK10,000,000

NOK15,000,000

NOK17,000,000

NOK20,000,000

The current exchange rate of the Norwegian kroner is $.115. Oleson's exchange rate forecasts for the Norwegian kroner over the project's lifetime are listed below:

Year 1

Year 2

Year 3

Year 4

$0.12

$0.13

$0.14

$0.15

What isthe net present value of the Norwegian project?