Lygon Corp. has an opportunity to invest in a 1 year project in Turkey. Lygon has estimated their pre-tax earnings in Turkish lira (TRY) but the analysts feel that both the Turkish corporate tax rate and the exchange rates are uncertain. Given the following after-tax earning estimates for the project, determine the expected NPV, assuming the project has a required cost of capital equal to 15%. Each after-tax earnings figure has already accounted for a given tax rate and given exchange rate. There is a 70% probability the exchange rate will be $0.377/TRY and a 30% probability the rate will be $0.435. There is a 40% probability that the tax rate will be 25% and a 60% probability that the tax rate will be 35%. For example, if the tax rate is 25% and the exchange rate is $0.3777, then the after tax proceeds in USD will be $4,241,250. Tax Rate Exchange Rate After tax USD 0.25 $0.3777 $4,241,250 0.35 $0.3777 $3,675,750 0.25 $0.4350 $4,893,750 0.35 $0.4350 $4,241,250