Brownshed company wants to invest in Europe:

Project costs 11.999 million

Expected to produce cash flows of 3.3 million in year 1, 2.9 million in year 2, and 3.7 million in year 3.

spot exchange rate is $1.28/

risk-free rate in the United States is 5.2 percent, compared to Europe of 3.7 percent

Discount rate is around 16 percent of the US cost of capital for company

What is the NPV of the project if the subsidiary can be sold at the end of three years for an estimated 7.6 million?

Please explain how you got your answer!