Capital Budegeting Practice Your company has a project in France. The project's cost is 2 million and the cash flows are .9 million per year for the next three years. The dollar required return is 10% and the current exchange rate is 0.500. The risk-free rate on euros is 7% per year. It is 5% per year on the dollar. The NPV for the project using the exact forms for UIP and the international Fisher effect is: Check your answer: $316,230.72