iton Co., based in the United 5tates, considers a project in which it has an initial cutlay of $3 million and expects to receive 11 million 5wiss francs (SF) in one year. The spot rate the franc is 50.81. Burton Co. decides to purchase put options on 5wiss francs with an exercise price of $0.78 and a premium of $0.03 per unit to hedge its receivables. It has a. quired rate of return of 20 percent. 1. Determine then net present value of this project for Burton Co. based on the forecast that the Swiss franc will be valued at $0.71 at the end of one year. Do not round intermediste calculations. Round your answer to the nearest dollar. 2. Assume the same intormation as in part (a), but with the following adjustment. While Burton expected to roceive 11 miliion Swiss francs, assume that there were unexpected weak economic cond tions in Switrertand after Burton initiated the project. Cansequently, Burton received only 6 million Swiss francs at the end of the year. Aso assume that the spot rate of the franc at the end of the year was 50.79. Determine the net present value of this project for Burton Co. if these conditions occur. Do not round intermediate calculations. Round your answer to the nearest dollar