Hamilton Equipment has an investment opportunity in Europe. The project costs 9.5 million and is expected to produce cash flows of 1.6 million in Year 1, 2.1 million in Year 2, and 3.2 million in Year 3. The current spot exchange rate is .94/$ and the current risk-free rate in the United States is 2.3 percent, compared to that in Europe of 1.8 percent. The appropriate discount rate for the project is estimated to be 13 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 7.8 million. What is the NPV of the project in US dollar? Note: You need to calculate forward exchange rates in future three years and use them to calculate cash flows in US dollar each year. Useful formulas: Exact Interest Rate Parity: FT=[(1+RFC)/(1+RHC)]TS0,RHC is interest rate in Home Country and RFC is interest rate in Foreign Country. NPV = -Initial Cost in US dollar + Present Values of Future Cash Flows in US dollar