URGENT**

Jabreakit Inc. is a dairy manufacturer in the United States and currently exports US$2 million worth of dairy products to Australia every year. Jabreakit Inc. is planning to establish a subsidiary in Australia which will have a lower production cost and the products will be sold directly in Australia. For this reason, Jabreakit Inc. will need to shut down its export business and the production lines in the United States. The Australian subsidiary is expected to remit US$3.5 million net cash flows to its parent in the first year. The remitted net cash flows will continue to grow by 20% every year compared to its previous year. You can assume that the U.S. government does not charge tax for the A$ income. The parent company will require an initial investment of US$3 million to set up the subsidiary and the project will end in 3 years. The required rate of return of the parent company is 17%. What is the NPV in US$ of the Australian project?

a. US$6,206,438

b. US$1,898,086

c. US$1,787,268

d. US$4,787,268