Consider the following international investment opportunity. It involves a gold mine that can be opened at a cost, then produces a positive cash flow, but then requires environmental clean-up:
Cash Flow:
Year 0: -25,000 Euro
Year 1: 60,000 Euro
Year 2: -36,000 Euro
The current exchange rate is $1.80 = €1.00. The inflation rate in the U.S. is 6 percent and in the euro zone 2 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 8 percent. Find the dollar-denominated NPV of this project.