International Capital Budgeting Using the Foreign Currency Approach. ABC Company is considering a capital project with the cash flows as stated below in Euros. The project is in Euros and must be converted back to USD. The exchange rate is 0.83 Euros. The difference in the nominal rates between the two currencies is 2 percent.

The appropriate discount rate for the project is estimated to be 10%, the US cost of capital for the company. What is the NPV of the project in US Dollars?

Round to the nearest cent and format as "XXX,XXX.XX"

NPV

Year	Cash Flows in Euro
Year 0	2,900,000
Year 1	1,100,000
Year 2	1,100,000
Year 3	1,100,000