(Solved): Lakonishok Equipment has an investment opportunity in Europe. The project costs \( 22640052 \) ...

Lakonishok Equipment has an investment opportunity in Europe. The project costs \( € 22640052 \) and is expected to produce cash flows of \( € 4081477 \) in Year 1, \( € 4493460 \) in Year 2, and \( € 6141772 \) in Year 3. The current spot exchange rate is \( \$ 1.30 / € \) and the currant risk-free rate in the United States is \( 3.10 \% \), compared to that in Europe of \( 2.91 \% \). The appropriate discount rate for the project is estimated to be \( 10.41 \% \), the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated \( € 13395951 \). What is the NPV of the project?