1. Kurnick Co. expects that the pound willdepreciatefrom $1.64 to $1.36 per pound in17 days. It has no money to invest, but it could borrow money to invest. It has been approved by a bank to borrow either 1.3 million dollars or 1.3 million pounds for one year. It can borrow dollars at an annual rate of 7.17% or British pounds at an annual rate of 6.31%. It can invest in a risk-free dollar deposit at an annual rate of 5.76% or a risk-free British deposit at an annual rate of 4.61%. Determine the expected profit (in dollars) if Kurnick Co. pursues a strategy to capitalize on the expected depreciation of the pound (Please round your answer up to a dollar and fill the blank with a number only. Please keep at least 6 decimals for the intermediate steps.)