Venus Intl. co, a U.S.-based MNC is studying the feasibility of having a subsidiary in Britain. After some investigations, the parent's initial investment in the project is estimated at $5,000,000, the project's lifetime is three years, and Venus' cost of capital is 10%. All cash flows generated from the project will be remitted to the parent at the end of each year. The estimated cash flows the British subsidiary will generate (in British pounds) over the three years are presented in the table. Year 1 Year 2 Year 3 1,000,000 2,500,000 1,500,000 The current exchange rate of the pound is $1.65. Venus' exchange rate forecast for the British pound over the project's lifetime is presented in the table: Year 1 Year 2 Year 3 $1.70 $1.65 $1.70 Given the information provided, what is the net present value of the British project? $3,556. $1,870,398 $1,556,225 $1,294,445 $342,499