Duisville Co, is a U.S. firm considering a project in Austria which it has an initial cash outiay of $6 million. Louisville will accept the project only if it can atisfy its required rate of return of 16 percent. The project would definitely generate 2 million euros in one year from sales to a farge corporate customer in ustria. In addition, it also expects to recelve 3 million euros in one year from sales to other customers in Austria. Louisville's best guess is that the euro's pot rate will be $1.25 in one year. Today, the spot rate of the euro is $1.40, while the one-year forward rate of the euro is $1.33. If Louisville accepts the roject, it would hedoe all the receivables resulting from sales to the large corporate customer but none of the expected recelvables due to expected iales to ather customers. 1. Estimate the net present value of the project. Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus slgn to enter a negative value, if any. 1 2. Assume that Loulsville considers alternative financing for the project in which it would use \$4 milion cash while the remaining initial outiay would come from borrowing euros, In this case, it would need 1,600,000 euros to repay the loan (principal plus interest) at the end of one year. A5sume no tax effects due to this alternative financing. Estimate the NPV of the project under these conditions, Do not round intermediate calculations. Found your answer to the nearest dollac. Use a minus sign to enter a negative value, if any. 3 3. Do you think the Louisville's exposure to exchange rate risk due to the project if it eses the alternative financing (explained in part b) is highec, lowes, or the same as if it has an initial cash outlay of $6 million (and does not borrow any funds)? Briefly explain. Partial finaricing with euros exposure to exchange rate risk because using the alternative financing funds to he remikted to the U.S