Tampa Co. is considering a project in which it will export special contact lenses to Mexico. It expects that it will receive 1 million pesos after taxes at the end of each year for the next 3 years, and after that time its business in Mexico will end as its special patent will be terminated. The peso's spot rate is presently $1.2. The U.S. annual risk-free interest rate is 12% and Mexico's annual risk-free interest rate is 8%. Interest rate parity exists. Tampa Co. uses the one-year forward rate as a predictor of the exchange rate in one year. Tampa Co. also presumes that the exchange rates in each of the years 2 through 3 will also change by the same percentage as it predicts for year 1. Tampa searches for a firm with which it can swap pesos for dollars over each of the next 3 years. Smith Co. is an importer of Mexican products. It is willing to take the 1 million pesos per year from Tampa Co. and will provide Tampa Co. with dollars at an exchange rate of $0.2 per peso. Ignore tax effects. Tampa Co. has a capital structure of 60% equity and 40% debt. Its corporate tax rate is 24% combined federal and state). It borrows funds from a bank and pays 12% interest on its debt. It expects that the U.S. annual stock market return will be 16% per year. Its beta is -0.2. Tampa would use its cost of capital as the required return for this project. Determine the net present value (NPV) of this project if Tampa engages in the currency swap. O a. $507,459 O b. $794,372 O c. $487,381 O d. $381,127 O e. $628,956