Assume that Taps Corporation is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $4,900,000. If the project is undertaken, Baps would terminate the project after four years. Taps cost of capital is 13%, and the project is of the same risk as Taps 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 projects lifetime in Norwegian kroner (NOK):

Year 1 Year 2 Year 3 Year 4

NOK8,100,000 NOK14,600,000 NOK16,900,000 NOK18,400,000

The current exchange rate of the Norwegian kroner is $.135. Taps exchange rate forecast for the Norwegian kroner over the projects lifetime is listed below:

Year 1 Year 2 Year 3 Year 4

$.13 $.14 $.12 $.15

What is the net present value of the Norwegian project?