You are the tax accountant for XYZ Ltd, a Canadian company that has just acquired a new subsidiary in the United States. The subsidiary had a net income of USD 500,000 in the previous tax year and is subject to a corporate tax rate of 21%. XYZ Ltd is subject to a Canadian corporate tax rate of 26.5%. Calculate the after-tax return on investment (ROI) for XYZ Ltd if it invests CAD 5,000,000 in the subsidiary.

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