Suppose a British company investigates an investment opportunity in Turkey. The project costs 20 million. The company expects to produce annual cash inflows of TL91 million for the next 3 years. The risk adjusted appropriate TL discount rate for the project is 16.0%. The current spot-exchange rate is 0.104/TL and the is selling at a one year forward premium of 590 basis points.

The expected future spot rates for the following 5 years are

E[S1]= 0.091/TL

E[S2]= 0.086/TL

E[S3]= 0.081/TL

E[S4]= 0.077/TL

E[S5]= 0.072/TL

Calculate the value of the project from the parent's perspective.