Loulsville Co. is a U.S. firm considering a project in Austria which it has an intial cash outiay of s8 milion. Loubville will accept the project only it ic can satify its required rate of return of 20 percent. The project would defintely generate. 3 million euros in cne year from sales to a large corporate ciastomer in Austria. In addition, is also expects to recelve 4 million euros in one year from cales to other customers in Austria, Louisville's best quess is that the euro's spot rate wil be $1.25 in che year. Today, the spot rate of the euro is \$1.40, whlle the one-vear forward rate of the euro is $1.33. If Louisville accepts the project, it would hedge all the receivables resulting from sales to the iarge comparate customer but aone of the expected recelvables due to expected sales to other customers. 1. Estimate the net present value of the project. Do not round intermediate calculations. Riound your answer to the nearest dollar Use a minus sign to enter a negative value, if any. 3 2. Assume that Loulswille considers altemative financing for the project in which it would use $6 million cash while the remaining initial outlay would come from borrowing euros. In this case, it would need 1,600,000 euros to repay the loan (principal plus interest) at the end of one yeae Assume no tak effects due to thit aiternative financing. Estimate the NPV of the project under these conditions. Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any. 3. Do you think the Loulsvile's exposure to excigange rate risk due to the project if it uses the alternative financing (explained in part b) is higher, lawee, of the same at It has an iniedal cash ovtlay of 58 million (and does not borrow any funds)? Briefly explain. Partial financing with euros exposure to exchange rate risk because using the alternative financing remitted to the U.5