Suppose a Turkish company investigates an investment opportunity in Spain. The project costs TL840 million. The company expects to produce annual cash inflows of 38 million for the next 3 years. The risk adjusted appropriate discount rate for the project is 2.0%. The current spot-exchange rate is 0.120/TL and the is selling at a one year forward premium of 440 basis points.

The expected future spot rates for the following 5 years are

E[S1]= 0.126/TL

E[S2]= 0.121/TL

E[S3]= 0.116/TL

E[S4]= 0.111/TL

E[S5]= 0.106/TL

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