Mr. X wants to invest in Bangladesh RMG. He plans to invest 1 million USD in a local factory based in Gazipur. The current exchange rate is BDT/ USD = 120. It’s a 5 yearlong investment with following expected cash flows:

1: 80,00,000; 

2: 150,00,000;

3: 350,00,000; 

4: 450,00,000; 

5: 600,00,000

Mr. x is worried about a declining BDT. Hence he has gone into 5 forward exchange rate contracts that will be activated at the end of each year. The forward rate BDT/ USD are as follows:

1: 122; 

2: 125; 

3: 126; 

4: 128; 

5: 130. 

He will convert all the cash flows back to USD using these exchange rates.

What is NPV of this investment