Flexible Steel of the United States is considering expanding its business in Zaire. Under current law, 100% of foreign investor cash flow from depreciation and 50% of accounting income must be retained within Zaire until the investment is 5 years old. Blocked funds may be reinvested in treasury deposits at 5% per annum, tax free, and compounded annually. Flexible Steel is contemplating a new steel plant investment as follows. All cash flows will be valued if they occur on December 31. Thus the investment outlay occurs on December 31, 2020, and earnings are available for local currency dividend payments on December 31, 2021 through 2025. All blocked funds may be exchanged for dollars on December 31, 2025. Foreign exchange rates are expected to be as follows:

December 31, 2018: Z 4.0/$

December 31, 2019: Z 4.5/$

December 31, 2020: Z 5.0/$

December 31, 2021: Z 5.5/$

December 31, 2022: Z 6.0/$

December 31, 2023: Z 6.5/$

Other information includes the following: * Investment outlay will be $40,000,000 for plant and equipment and $4,000,000 for working capital. * Recovery for building and equipment will be depreciated on a straight-line basis over 5 years to a zero salvage value. Working capital will be fully recovered at the end of five years. * Sales are expected to be Z100,000,000 per year. Variable cash costs will be 30% of sales, and fixed cash costs will be Z3,000,000 annually. * Corporate income taxes are 30% in both Zaire and the United States. * Flexible Steel's weighted average cost of capital for projects of this type is 15%. In similar projects would be expected to earn 15%. Calculate the NPV of the project based on cash flows to the parent.

A)$16,285,500 loss

B) $11,673,700 loss C) $20,349,300 loss

D) $18,432,400 loss

E) $14,196,800 loss