Ch 21 Help Save & Exit S Check my w 11.11 points Lakonishok Equipment has an investment opportunity in Europe. The project costs 13 million and is expected to produce cash flows of 3 million in year 1, 3.1 million in year 2, and 3.1 million in year 3. The current spot exchange rate is $1.22, the current risk- free rete in the United States is 4.6 percent, compared to that in Europe of 4.6 percent. The appropriate discount rate for the project is estimated to be 11 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated 7.6 million. What is the NPV of the project? Skipped Dook Print Multiple Choice References O $53,898.66 0 $51,825.63 0 $51,825.63 0 $49752.61 S-5169 44260