Carpet Baggers Inc. is proposing to construct a new bagging plant in a

country in Europe. The two prime candidates are Germany and Switzerland.

The forecasted cash flows from the proposed plants are as follows:

The spot exchange rate for euros is $$\frac{1\mathrm{.}3}{},$ while the rate for Swiss francs is

CHF $1\mathrm{.}5/$$$.$ The interest rate is $5\%$ in the United States, $4\%$ in Switzerland, and

$6\%$ in the euro countries. The financial manager has suggested that, if the

cash flows were stated in dollars, a return in excess of $10\%$ would be

acceptable.

Should the company go ahead with either project? If it must choose

between them, which should it take? Justify your answer.

Cite six $(6)$ peer$-$reviewed articles not including your textbook.