Use the Following Information to Answer the Question(s) Below

Use the following information to answer the question(s) below.
Rearden Metal, a U.S. manufacturer, has made a purchase from d'Anconia Copper and is expecting a cash
outflow of 2 million ARS (Argentine Pesos) in six months. The currency spot rate is $0.2500/ARS and the
six-month forward rate is F6months = $0.2470/ARS. The appropriate annual discount rate for the
Argentine Peso is 6.5% and the annual discount rate for the U.S. dollar is 4%.
-The present value of Rearden Metal's cash outflow computed by first converting to dollars and then discounting the cash flow at the appropriate U.S.Dollar rate is closest to:

A) $469,500.
B) $475,000.
C) $481,000.
D) $484,500.