The new tax law makes it even easier for Bell, Inc. to move its production, sales facilities, and jobs offshore to avoid U.S. taxes. Bell is considering a 2-year investment in a project based in the sovereign and low-tax nation of Uruguay. The cash flows will be in the local currency, the galleon, and the current direct exchange rate is GAL/USD = S = $4.50. Hogwarts is experiencing quite a bit of inflation and its central bank's risk-free bonds have a nominal annual yield of 15% compared to the U.S. risk-free rate of 3%. The project cash flows (in galleons) are expected to be:

Year 0 1 2

-1000 800 700

Convert these cash flows to dollars using the appropriate forward rates and calculate the dollar NPV of the project if your dollar-denominated cost of capital is 10%.