Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$10,000,000 (Singapore dollars). The required rate of return is expected to be 15.00% for all four years of the project.

_____________________________Year 0Year 1Year 2Year 3Year 4Cash Flows to Parent, excluding Salvage Value$2,100,000$2,100,000$3,600,000$3,900,000Initial Investment$10,000,000

Which of the following most closelyapproximatesthe break-even salvage value?

$2,783,180

$3,131,078

$3,826,873

$3,478,975