1. The following information applies to the next two questions (which is a continuation from the previous question). Alab Inc. is considering a capital budgeting project in Malaysia. The project requires an initial outlay of USD$2 million dollars. The Malaysia ringgit is currently valued at $.25. In the first and second years of operation, the project will generate MYR5,000,000 in each year. After two years, Alab will terminate the project, and the expected salvage value is MYR800,000. Alab has assigned a discount rate of 10 percent to this project. The following additional information is available: There is currently no withholding tax on remittances to the U.S., but there is a 40 percent chance that the Malaysian government will impose a withholding tax of 20 percent beginning next year. The value of the Malaysian ringgit (MYR) is expected to remain unchanged over the next two years. What is the NPV of the scenario where there is 20% withholding tax? Pick the closest answer.

   		$334,710.74
   		$169,421.49
   		-$99,173.55
   		$161,157.02
   		$268,595.04