American firm is evaluating an investment in the Philippines. The project costs 500 million pesos and it is expected to produce an income of 250 million pesos a year in real terms for each of the next 3 years. The expected inflation rate in the Philippines is 7 percent a year and the firm estimates that an appropriate discount rate for the project would be about 8 percent above the risk-free rate of interest. Calculate the net present value of the project in U.S. dollars. The interest rate is about 8.3 percent in the Philippines and 3 percent in the United States. Exchange rates are