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Use the folllowing the answer the next two questions. XYZ corporation (US firm) is evaluating a project with the following expected cash flows and discount

Use the folllowing the answer the next two questions. XYZ corporation (US firm) is evaluating a project with the following expected cash flows and discount rate(K):

Year 0

Year 1

Year 2

Year 3

Year 4

K= .10

K=.12

K=.15

K=.18

Dollars

-500,000

500,000

50,000

500,000

250,000

Yen

-1,000,000

2,500,000

500,000

500,000

-700,000

Pounds

-100,000

60,000

-10,000

-100,000

-200,000

Exchange rates over this four year period are as follows:

Exchange Rate

Year 0

Year 1

Year 2

Year 3

Year 4

Yen

.005USD/JY

.002USD/JY

.005USD/JY

.005USD/JY

.008USD/JY

Pounds

2.2 USD/BP

2 USD/BP

2.7 USD/BP

2.5 USD/BP

2.2 USD/BP

Find the initial outlay (year 0 cost) in dollars for the project. Round intermediate steps and your final answer to four decimals. Do not use the dollar sign when entering your answer.

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