You are evaluating a project and are trying to determine the cash flows in dollars your firm needs to receive in five years to accept the project.

The necessary information is:

If you accept the project, your firm will receive 10 million Indian Rupee in 5 years, lump sum guaranteed

Spot rate for Indian Rupee is $0.06

Annualized interest rate in United States for 5 year period is 5 percent

Annualized interest rate in Thailand for 5 year period is 17 percent.

Interest parity exists

Plan is to hedge cash flows with a forward contract.

(Thiland uses the Indian Rupee and this is where the project will occur.)

What is the dollar amount of cash flows that firm will receive in five years if it accepts this project?