Lakonishok Equipment has an investment opportunity in Europe. The project costs $15,300,000$ and is expected to produce cash flows of $3,900,000$ in Year $1,4,900,000$ in Year $2,$ and $5,300,000$ in Year $3.$ The current spot exchange rate is $$\mathrm{.}77/$ and the current risk$-$free rate in the United States is $2\mathrm{.}7$ percent, compared to that in euroland of $2\mathrm{.}3$ 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 $9,800,000.$