Burton Co., based in the United States, considers a project in which it has an initial outlay of $2 million and expects to receive 8 milllon 5 wiss francs (SE) in one year. The spot rate of the franc is $0.83. Burton Co. decides to purchase put options on Swiss francs with an exercise price of s0.81 and a premium of 50.02 per. unit to hedge its receivables. It has a required rate of return of 20 percent. 1. Determine the net present value of this project for Burton Co. based on the forecast that the Swiss franc will be valued at 50.72 at the end of ane year, Do not round intermediate calculations. Round your answer to the nearest dollar. 2. Assume the same information as in part (a), but with the following adjustment. While Burton expected to receive is milton Siniss franci, assume that there were unexpected weak economic conditions in Switzeriand after Burton initiated the groject. Consequently, Burton recelved only 5 million 5 wiss francs at the end of the year: Also assume that the spot rate of the franc at the end of the year was $0,82. Determine the net present value of this groject for Burton Co. if these conditions occur. Do not round intermediate calculations. Round your answer to the nearest dollar. 5