1. An analyst does research about capital investment project. A company is evaluating a capital investment project that has the same risk as the company. The project is expected to generate end-of-year, after-tax cash flows of €2 million each year for five years. The company's cost of equity capital is 15 percent, and the company's weighted average cost of capital is 10.4 percent. If the project's profitability index is equal to 1.0, the initial investment for that project is closest to: