Lakonishok Equipment has an investment opportunity in Europe. The project costs $12$ million and is expected to produce cash flows of $1\mathrm{.}6$ million in Year $1,2$ million in Year $2,$ and $3\mathrm{.}1$ million in Year $3.$ The current spot exchange rate is $$1\mathrm{.}31/$; and the current risk$-$free rate in the United States is $1\mathrm{.}6$ percent, compared to that in Europe of $2\mathrm{.}4$ percent. The appropriate discount rate for the project is estimated to be $10$ 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 $8\mathrm{.}6$ million. Use the exact form of interest rate parity in calculating the expected spot rates.

What is the NPV of the project in U$.$S$.$ dollars? $($Do not round intermediate calculations and enter your answer in dollars, not in millions, rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89)$

Multiple Choice

$$15,691,913\mathrm{.}43$

$$2,112,503\mathrm{.}94$

$$189,547\mathrm{.}49$

$$2,661,422\mathrm{.}28$