Magna Crater Enterprises (MCE) of the US exports 60,000 units of computer parts per year to Argentina. It sells them for the equivalent of $60 per unit. Total current cost is $48 per set. MCE is studying the possibility of establishing a subsidiary in Argentina to produce and sell the parts locally. Sales volume and price would not be affected.The cost of plant and equipment would be $2,000,000. Plant and equipment will be fully depreciated to book value of zero on a straight-line basis for two years. Their market salvage value is estimated at $600,000 at the end of year two. The upfront net working capital needs are $800,000. The level of NWC will not change in the interim period. The subsidiary would import all its raw materials from the parent at a cost of $16 per set. Additional local costs for the subsidiary are $4 per set. MCE's pre-tax profit margin on the $16 sale is $7. Tax rate in the US and Argentina is 40%.The WACC for MCE and its subsidiary is 15%. Calculate year-one net cash flows from the perspective of the subsidiary.

a)$ 1,400,000

b)$ 1,696,000

c)$ 1,840,000

d)$ 2,440,000