(Related to Checkpoint 19.3) (International capital budgeting)An American firm is considering a new project in the country of Geeblaistan. This new project will produce the following cash flows,

Year Cash Flow (in millions of BLAs)

0 -19 1 7 2 7 3 6 4 4

, measured in BLAs, the currency of Geeblaistan, which are expected to be repatriated to the parent company in the United States.In addition, assume the risk-free rate in the United States is 3 percent, and that this project is riskier than most and, as such, the firm has determined that it should require a premium of 16 percent over the risk-free rate. Thus, the appropriate discount rate for this project is 19 percent. In addition, the current spot exchange rate is 0.9264 BLA/$, and the 1-year forward exchange rate is 1.0122 BLA/$.What is the project's NPV?